Kontoor Brands Inc (KTB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.68% | 12.15% | 11.44% | 10.42% | 10.76% | 10.90% | 10.23% | 11.57% | 12.10% | 11.24% | 12.06% | 10.50% | 9.83% | 9.44% | 9.27% | 6.88% | 2.19% | 31.83% | 29.92% | 30.12% |
| Operating profit margin | 13.11% | 12.97% | 12.60% | 12.13% | 12.38% | 12.46% | 12.28% | 13.26% | 13.69% | 13.41% | 13.58% | 12.09% | 11.63% | 11.23% | 11.45% | 9.66% | 5.90% | 5.83% | 3.19% | 5.98% |
| Pretax margin | 11.54% | 11.34% | 10.88% | 10.36% | 10.54% | 10.72% | 10.61% | 11.64% | 12.25% | 11.80% | 12.13% | 10.70% | 10.05% | 9.62% | 9.53% | 7.35% | 3.48% | 3.27% | 0.66% | 4.02% |
| Net profit margin | 9.41% | 9.75% | 9.41% | 8.81% | 8.96% | 8.11% | 7.93% | 8.92% | 9.43% | 9.36% | 9.66% | 8.59% | 8.03% | 7.88% | 8.02% | 6.01% | 3.24% | 2.61% | 0.34% | 3.29% |
Kontoor Brands Inc's profitability ratios have shown some fluctuations over the past few years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, has generally been trending upwards since December 2020, reaching 12.68% by December 31, 2024.
The operating profit margin, a measure of a company's operating efficiency and pricing strategies, has also shown an increasing trend, starting at 5.98% on March 31, 2020, and reaching 13.11% by December 31, 2024.
The pretax margin, which represents the company's profitability after taking into account all expenses except for income taxes, has shown some fluctuations but generally increased from 4.02% on March 31, 2020, to 11.54% by December 31, 2024.
Lastly, the net profit margin, showing the percentage of revenue that translates into profit after all expenses have been deducted, has also demonstrated a positive trajectory, increasing from 3.29% on March 31, 2020, to 9.41% by December 31, 2024.
Overall, Kontoor Brands Inc has shown improvement in its profitability ratios over the years, indicating effective cost management and operational efficiency.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.74% | 20.17% | 19.88% | 18.58% | 19.40% | 20.20% | 19.77% | 20.89% | 22.54% | 20.61% | 22.78% | 18.75% | 18.46% | 17.19% | 18.06% | 14.29% | 8.01% | 7.16% | 4.30% | 7.52% |
| Return on assets (ROA) | 14.89% | 15.16% | 14.86% | 13.49% | 14.04% | 13.15% | 12.77% | 14.05% | 15.52% | 14.39% | 16.21% | 13.33% | 12.75% | 12.06% | 12.65% | 8.89% | 4.39% | 3.21% | 0.46% | 4.13% |
| Return on total capital | 29.91% | 30.16% | 28.39% | 26.44% | 27.50% | 28.93% | 28.58% | 30.05% | 34.26% | 32.64% | 36.19% | 30.72% | 30.18% | 28.88% | 29.22% | 23.36% | 12.64% | 11.28% | 6.09% | 10.42% |
| Return on equity (ROE) | 61.44% | 70.21% | 65.25% | 57.91% | 62.11% | 61.51% | 63.54% | 77.18% | 97.90% | 114.27% | 139.59% | 115.04% | 131.92% | 105.34% | 124.77% | 100.62% | 80.25% | 205.79% | — | — |
The profitability ratios of Kontoor Brands Inc show a varying trend over the quarters analyzed.
1. Operating return on assets (Operating ROA) has been steadily increasing from 7.52% in March 2020 to a peak of 22.78% in June 2022, before showing some fluctuations but remaining relatively high at 19.88% in June 2024. This ratio measures how efficiently the company generates operating profits from its assets.
2. Return on assets (ROA) also demonstrates an upward trend, starting at 4.13% in March 2020 and reaching a peak of 16.21% in June 2022. It then stabilized around the 14-15% range from September 2023 to December 2024. ROA reflects the company's ability to generate profits from its total assets.
3. Return on total capital peaked at 36.19% in June 2022, showing a similar pattern of increase followed by some fluctuations but remaining strong, with the ratio at 30.16% in September 2024. This ratio evaluates the return the company earns on all invested capital, both equity and debt.
4. Return on equity (ROE) portrays a fluctuating pattern, with high peaks in September 2020 and June 2022 at 205.79% and 139.59% respectively. However, ROE declined over the quarters but retained a solid performance, with a ratio of 70.21% in September 2024. ROE indicates how efficiently the company generates profits from shareholders' equity.
Overall, the profitability ratios of Kontoor Brands Inc demonstrate a positive trend, showing an improvement in the company's ability to generate profits from its assets and capital over the analyzed periods. It's important to monitor these ratios to assess the company's financial performance and profitability sustainability.