Kontoor Brands Inc (KTB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.80% | 12.10% | 9.83% | 2.54% | 5.94% |
| Operating profit margin | 12.38% | 13.69% | 11.63% | 5.90% | 6.60% |
| Pretax margin | 10.54% | 12.25% | 10.05% | 3.48% | 5.30% |
| Net profit margin | 8.96% | 9.43% | 8.03% | 3.24% | 3.79% |
Kontoor Brands Inc's profitability ratios have shown fluctuations over the years. The gross profit margin has varied between 2.54% in 2020 to 12.10% in 2022, indicating the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin, which reflects the efficiency of the company's operating activities, ranged from 5.90% in 2020 to 13.69% in 2022. This metric suggests Kontoor Brands Inc's operational effectiveness in generating profits before considering interest and taxes.
The pretax margin, showing the proportion of earnings relative to total revenue before tax expenses, varied between 3.48% in 2020 to 12.25% in 2022. This measure highlights the company's ability to manage its pre-tax profits over the years.
The net profit margin, indicating the company's bottom-line profitability after all expenses have been deducted, ranged from 3.24% in 2020 to 9.43% in 2022. This metric reflects Kontoor Brands Inc's ability to generate profits relative to its total revenue.
Overall, the company has experienced fluctuations in its profitability ratios, with some improvements in recent years indicating potential enhancements in operational efficiency and cost management. However, it is essential to monitor these ratios consistently to assess the company's financial health and performance accurately.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.40% | 22.54% | 18.46% | 8.01% | 11.09% |
| Return on assets (ROA) | 14.04% | 15.52% | 12.75% | 4.39% | 6.37% |
| Return on total capital | 27.50% | 34.26% | 30.18% | 12.64% | 17.40% |
| Return on equity (ROE) | 62.11% | 97.90% | 131.92% | 80.25% | 139.56% |
Kontoor Brands Inc has shown a consistent improvement in its profitability ratios over the past five years.
Operating return on assets (Operating ROA) has fluctuated, with a peak of 22.54% in 2022 and a slight dip to 19.40% in 2023. This ratio indicates the company's ability to generate profits from its assets used in operations.
Return on assets (ROA) has followed a similar trend, reaching 15.52% in 2022 and 14.04% in 2023. This ratio measures how efficiently the company is utilizing its assets to generate profits.
Return on total capital has also demonstrated a positive growth trend, peaking at 34.26% in 2022 and recording 27.50% in 2023. This ratio reflects the company's overall profitability in relation to its total capital employed.
Return on equity (ROE) has shown significant fluctuations, with a high of 139.56% in 2019 and a low of 62.11% in 2023. ROE indicates how effectively the company is generating profits from shareholders' equity.
Overall, Kontoor Brands Inc's profitability ratios show a generally improving trend, indicating efficient asset utilization and strong returns for investors. The company's ability to generate profits from its operations and capital base suggests a solid financial performance.