Kontoor Brands Inc (KTB)

Profitability ratios

Return on sales

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit margin 13.02% 10.80% 12.10% 9.83% 2.54%
Operating profit margin 13.06% 12.38% 13.69% 11.63% 5.90%
Pretax margin 11.50% 10.54% 12.25% 10.05% 3.48%
Net profit margin 9.38% 8.96% 9.43% 8.03% 3.24%

Kontoor Brands Inc has shown an improvement in its profitability ratios over the five-year period from 2020 to 2024.

1. Gross Profit Margin: The company's gross profit margin has exhibited a rising trend, increasing from 2.54% in 2020 to 13.02% in 2024. This indicates that the company has been able to effectively manage its production costs and generate higher profits from its revenue.

2. Operating Profit Margin: Kontoor Brands Inc's operating profit margin has also been increasing steadily, reaching 13.06% in 2024 from 5.90% in 2020. This suggests that the company has been successful in controlling its operating expenses and improving its operational efficiency.

3. Pre-tax Margin: The pre-tax margin of the company has shown fluctuations but has generally trended upwards from 3.48% in 2020 to 11.50% in 2024. This indicates that Kontoor Brands Inc has been able to enhance its profitability before accounting for taxes over the years.

4. Net Profit Margin: The net profit margin has increased from 3.24% in 2020 to 9.38% in 2024. This improvement implies that the company has been managing its overall expenses, including interest and taxes, effectively to generate higher bottom-line profits.

Overall, Kontoor Brands Inc's profitability ratios have shown positive trends, reflecting the company's ability to enhance its profitability and financial performance over the specified period.


Return on investment

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating return on assets (Operating ROA) 20.74% 19.40% 22.54% 18.46% 8.01%
Return on assets (ROA) 14.89% 14.04% 15.52% 12.75% 4.39%
Return on total capital 30.02% 27.50% 34.26% 30.18% 12.64%
Return on equity (ROE) 61.44% 62.11% 97.90% 131.92% 80.25%

Kontoor Brands Inc has demonstrated a positive trend in profitability ratios over the past five years.

1. Operating Return on Assets (Operating ROA): The company's operating ROA has shown consistent improvement from 8.01% in 2020 to 20.74% in 2024, indicating that the company is becoming more efficient in generating operating profits from its assets.

2. Return on Assets (ROA): The overall ROA has also exhibited strong growth, increasing from 4.39% in 2020 to 14.89% in 2024. This signifies that the company has been able to generate higher returns on its total assets over the period.

3. Return on Total Capital: Kontoor Brands Inc's return on total capital has shown a substantial increase, rising from 12.64% in 2020 to 30.02% in 2024. This indicates that the company has been successful in generating higher returns on the total capital employed in its operations.

4. Return on Equity (ROE): The ROE has displayed a mixed trend, peaking at 131.92% in 2021 before declining to 61.44% in 2024. Despite the fluctuations, the company has maintained a generally high return on equity, reflecting its ability to generate profits for its shareholders relative to their equity investment.

Overall, Kontoor Brands Inc's profitability ratios demonstrate a positive trajectory, with consistent improvements in operational efficiency and returns on investment over the years, indicating effective management of assets and capital to drive profitability and create value for shareholders.