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.