Kontoor Brands Inc (KTB)

Quick ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash	US$ in thousands	215,050	77,828	82,418	52,677	59,179	58,053	145,296	193,630	185,322	215,442	175,628	229,542	248,138	285,251	256,276	479,366	106,808	40,804	76,687
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	59,922	59,922	—	—
Receivables	US$ in thousands	217,673	236,816	186,024	—	225,858	234,569	185,157	276,037	289,800	269,874	215,297	221,031	231,397	221,971	153,302	213,080	228,459	302,582	254,049
Total current liabilities	US$ in thousands	392,637	389,279	389,009	402,070	440,429	507,446	465,020	491,053	455,812	504,598	421,639	432,733	413,635	462,923	330,773	366,728	378,550	389,558	381,564
Quick ratio		1.10	0.81	0.69	0.13	0.65	0.58	0.71	0.96	1.04	0.96	0.93	1.04	1.16	1.10	1.24	2.05	1.04	0.88	0.87

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 displayed fluctuations over the past several quarters. The Quick Ratio, which measures the company's ability to cover its short-term obligations with its most liquid assets, stood at 1.10 as of December 31, 2023. This suggests that the company had $1.10 in current assets available to cover each dollar of current liabilities, indicating a relatively healthy liquidity position.

However, the Quick Ratio was considerably lower in the preceding quarters, reaching a low of 0.13 on March 31, 2023, which could be concerning as it indicates a potential liquidity strain. The ratio improved in the subsequent quarters but remained below 1.0 until the last two quarters, where it surpassed that benchmark.

The fluctuations in the Quick Ratio may indicate variations in the company's ability to manage its short-term obligations efficiently. Investors and analysts should continue to monitor this metric to assess Kontoor Brands Inc's liquidity position and its ability to meet its short-term financial commitments.