Kontoor Brands Inc (KTB)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Net income (ttm)	US$ in thousands	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	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	69,257	55,571	82,168
ROE		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, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $230,994K ÷ $371,913K
= 62.11%

The return on equity (ROE) for Kontoor Brands Inc has exhibited fluctuation over the periods indicated in the table. The ROE has shown a generally upward trend from 2019 to early 2021, with significant peaks reaching as high as 205.79% in September 2020. However, in recent periods, there has been some variability in the ROE, with values ranging from 61.51% to 77.18% in 2023.

The ROE measures the efficiency with which the company is utilizing its equity to generate profits. A high ROE suggests that the company is effectively using its shareholders' equity to generate profits. It indicates that Kontoor Brands Inc has been able to deliver strong returns to its shareholders in recent years.

It is essential to look into the factors driving these fluctuations in ROE, such as changes in the company's profitability, asset management efficiency, and leverage levels. Monitoring and analyzing the trends in ROE can provide valuable insights into the company's financial performance and its ability to generate returns for shareholders.