Kontoor Brands Inc (KTB)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	319,269	356,665	282,979	123,834	168,290
Total assets	US$ in thousands	1,645,440	1,582,260	1,533,020	1,545,820	1,517,160
Operating ROA		19.40%	22.54%	18.46%	8.01%	11.09%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $319,269K ÷ $1,645,440K
= 19.40%

Kontoor Brands Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. The company's operating ROA was highest in 2022 at 22.54% and lowest in 2020 at 8.01%. In 2023, the operating ROA decreased to 19.40% from the previous year, indicating a slight decline in the company's ability to generate operating profits from its assets.

It is important to note that a higher operating ROA signifies that the company is generating more operating income per dollar of assets, indicating efficient asset utilization. Conversely, a lower operating ROA suggests that the company is less efficient in utilizing its assets to generate operating income.

Overall, Kontoor Brands Inc's operating ROA performance indicates some volatility in asset efficiency over the past five years, with fluctuations in profitability levels. Investors and stakeholders should closely monitor future financial performance to assess the company's ability to maintain and potentially improve its operating ROA levels.