Kontoor Brands Inc (KTB)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	301,423	271,899	319,136	244,600	72,936
Revenue	US$ in thousands	2,620,280	2,579,340	2,604,520	2,434,200	2,097,840
Pretax margin		11.50%	10.54%	12.25%	10.05%	3.48%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $301,423K ÷ $2,620,280K
= 11.50%

The pretax margin of Kontoor Brands Inc has shown a positive trend over the past five years, starting at 3.48% in December 2020 and increasing to 11.50% by December 2024. This improvement indicates that the company has become more efficient in generating profits before accounting for taxes, which is a positive sign of operational effectiveness. The steady growth in pretax margin suggests that Kontoor Brands has been able to effectively manage its costs and increase its profitability over the years. However, the slight decrease in pretax margin from 2023 to 2024 may warrant further investigation to understand the underlying factors driving this change. Overall, the upward trajectory of Kontoor Brands Inc's pretax margin demonstrates an improving financial performance and efficiency in its operations.