Kontoor Brands Inc (KTB)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	245,802	250,595	239,578	224,205	230,994	213,828	205,380	230,979	245,493	237,798	250,128	211,770	195,423	194,625	191,997	135,098	67,923	53,564	7,281	78,529
Total stockholders’ equity	US$ in thousands	400,055	356,927	367,151	387,193	371,913	347,624	323,251	299,288	250,757	208,099	179,189	184,090	148,138	184,754	153,886	134,264	84,641	26,028	-44,889	-18,485
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%	—	—

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $245,802K ÷ $400,055K
= 61.44%

The return on equity (ROE) is a key financial metric that indicates how effectively a company is utilizing shareholders' equity to generate profits. Looking at the data for Kontoor Brands Inc from March 31, 2020, to December 31, 2024, we see a fluctuating trend in the ROE figures.

The ROE for Kontoor Brands Inc was not available for March and June 2020. However, starting from September 2020, the ROE surged to 205.79%, indicating that the company was able to generate significant returns on the shareholders' equity during that period.

Subsequently, the ROE figures exhibited some variations but remained relatively high compared to industry averages. The metric peaked at 139.59% on June 30, 2022, before gradually declining to 61.44% by December 31, 2024.

Overall, Kontoor Brands Inc's ROE showed a general upward trend from 2020 to mid-2022, signaling efficient utilization of shareholders' equity to generate profits. However, the decreasing trend in ROE from mid-2022 to the end of 2024 suggests that the company might have faced challenges or changes in its operating environment impacting profitability relative to shareholders' equity. It is important for stakeholders to monitor these trends and assess the company's strategies to maintain sustainable returns on equity over the long term.