Kontoor Brands Inc (KTB)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	271,899	282,748	274,772	301,560	319,136	299,662	313,903	263,844	244,600	237,490	228,144	165,274	72,936	66,961	13,958	96,169
Revenue (ttm)	US$ in thousands	2,589,611	2,647,350	2,600,927	2,599,919	2,604,516	2,540,463	2,588,165	2,465,948	2,434,204	2,469,159	2,394,349	2,247,901	2,097,839	2,049,753	2,117,336	2,390,409
Pretax margin		10.50%	10.68%	10.56%	11.60%	12.25%	11.80%	12.13%	10.70%	10.05%	9.62%	9.53%	7.35%	3.48%	3.27%	0.66%	4.02%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $271,899K ÷ $2,589,611K
= 10.50%

The pretax margin of Kontoor Brands Inc has fluctuated over the past few quarters. The pretax margin was relatively stable around 10% to 12% from December 2022 to June 2023. However, there was a notable increase in March 2023 to 11.60%. This suggests that the company was able to improve its profitability before accounting for taxes during that period.

Looking at the historical trend, there was a significant improvement in pretax margin from March 2021 to December 2022, where it increased from 3.48% to 12.25%. This indicates that the company was able to efficiently manage its operating expenses and generate higher earnings relative to its revenue during this period.

However, there were some fluctuations in pretax margin before March 2021, with the margin being below 10%, indicating potential challenges in cost management and revenue generation during those quarters.

Overall, the pretax margin trend of Kontoor Brands Inc shows variability but with an overall improvement in profitability over the past few quarters, especially when compared to earlier periods.