Kontoor Brands Inc (KTB)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 334,066 | 215,050 | 59,179 | 185,322 | 248,138 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 243,660 | 217,673 | 225,858 | 289,800 | 231,397 |
| Total current liabilities | US$ in thousands | 393,905 | 392,637 | 440,429 | 455,812 | 413,635 |
| Quick ratio | 1.47 | 1.10 | 0.65 | 1.04 | 1.16 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($334,066K
+ $—K
+ $243,660K)
÷ $393,905K
= 1.47
The quick ratio of Kontoor Brands Inc has exhibited fluctuations over the five-year period from 2020 to 2024.
In 2020, the quick ratio stood at 1.16, indicating that the company had $1.16 in liquid assets available to cover each dollar of current liabilities. This suggests a healthy liquidity position.
However, in 2021, the quick ratio decreased to 1.04, possibly signaling a slight decrease in the company's ability to cover its short-term obligations with its quick assets.
The ratio dropped significantly in 2022 to 0.65, which may indicate potential liquidity challenges for Kontoor Brands Inc during that period.
Subsequently, there was an improvement in 2023, with the quick ratio increasing to 1.10, suggesting a better ability to meet short-term obligations with liquid assets.
In 2024, the quick ratio rose significantly to 1.47, indicating a strengthened liquidity position compared to the previous year and potentially reflecting more conservative management of current liabilities.
Overall, fluctuations in the quick ratio of Kontoor Brands Inc over the five-year period highlight the company's varying ability to meet its short-term financial obligations with its liquid assets. It is essential for stakeholders to monitor these changes to assess the company's liquidity risk and financial health accurately.
Peer comparison
Dec 31, 2024