Kontoor Brands Inc (KTB)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 342,289 312,307 354,055 283,500 122,928
Long-term debt US$ in thousands 740,315 763,921 782,619 791,317 887,957
Total stockholders’ equity US$ in thousands 400,055 371,913 250,757 148,138 84,641
Return on total capital 30.02% 27.50% 34.26% 30.18% 12.64%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $342,289K ÷ ($740,315K + $400,055K)
= 30.02%

Based on the provided data, Kontoor Brands Inc's return on total capital has shown significant improvement over the years. The return on total capital increased from 12.64% in December 2020 to 30.18% in December 2021, indicating a strong upward trend. This was followed by a further increase to 34.26% in December 2022, demonstrating the company's efficient utilization of its capital resources.

However, there was a slight decline in the return on total capital to 27.50% in December 2023, which may have been influenced by various internal or external factors impacting the company's performance during that period. Nonetheless, Kontoor Brands Inc was able to rebound in December 2024 with a return on total capital of 30.02%, showing resilience and a positive recovery.

Overall, the trend in Kontoor Brands Inc's return on total capital indicates successful capital management and a strong ability to generate returns relative to the total capital employed in the business. The company's consistent focus on improving efficiency and profitability is reflected in these increasing return on total capital figures.