Kontoor Brands Inc (KTB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 245,802 | 230,994 | 245,493 | 195,423 | 67,923 |
| Total stockholders’ equity | US$ in thousands | 400,055 | 371,913 | 250,757 | 148,138 | 84,641 |
| ROE | 61.44% | 62.11% | 97.90% | 131.92% | 80.25% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $245,802K ÷ $400,055K
= 61.44%
From the data provided, Kontoor Brands Inc's return on equity (ROE) has shown significant fluctuation over the years. In 2021, the ROE surged to 131.92%, indicating that the company generated a substantial return for its shareholders relative to their equity investment. However, in the following years, the ROE decreased considerably to 97.90% in 2022, 62.11% in 2023, and further down to 61.44% in 2024.
The exceptionally high ROE in 2021 may suggest that the company efficiently utilized its equity to generate profits. Nevertheless, the subsequent decline in ROE could be a sign of decreasing profitability or a change in the company's capital structure.
It is important for stakeholders to closely monitor Kontoor Brands Inc's ROE trend to understand the factors driving these fluctuations and assess the company's overall financial health and performance in utilizing shareholder equity.
Peer comparison
Dec 31, 2024