Kontoor Brands Inc (KTB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	215,050	59,179	185,322	248,138	106,808
Short-term investments	US$ in thousands	—	—	—	—	59,922
Receivables	US$ in thousands	217,673	225,858	289,800	231,397	228,459
Total current liabilities	US$ in thousands	392,637	440,429	455,812	413,635	378,550
Quick ratio		1.10	0.65	1.04	1.16	1.04

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($215,050K + $—K + $217,673K) ÷ $392,637K
= 1.10

The quick ratio of Kontoor Brands Inc has varied over the past five years, ranging from 0.65 to 1.16. A quick ratio of 1.10 as of December 31, 2023, indicates that the company has $1.10 in liquid assets available to cover each dollar of its current liabilities. This signifies that Kontoor Brands Inc has improved its short-term liquidity position compared to the previous year when the quick ratio was 0.65.

The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1.0 generally indicates that the company has an adequate level of liquid assets to cover its current liabilities, reflecting good short-term financial health. In this case, the company's current quick ratio of 1.10 suggests that Kontoor Brands Inc is in a relatively stronger position to meet its short-term obligations compared to certain prior years.

It is important for investors and creditors to monitor the quick ratio over time to assess changes in the company's liquidity position and ability to manage its short-term financial commitments. The trend of improving quick ratios in recent years may be viewed positively by stakeholders as it indicates enhanced liquidity and financial stability for Kontoor Brands Inc.