Kontoor Brands Inc (KTB)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	312,307	354,055	283,500	122,928	170,981
Long-term debt	US$ in thousands	763,921	782,619	791,317	887,957	913,269
Total stockholders’ equity	US$ in thousands	371,913	250,757	148,138	84,641	69,257
Return on total capital		27.50%	34.26%	30.18%	12.64%	17.40%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $312,307K ÷ ($763,921K + $371,913K)
= 27.50%

Kontoor Brands Inc's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 27.50%, a decrease from the previous year's 34.26%. This decline might be attributed to changes in the company's capital structure or profitability. Comparing to 2021 and 2020, Kontoor Brands Inc experienced higher return on total capital in 2023. Despite the decrease from 2022, the return on total capital remains relatively high, indicating the company's ability to generate profits from its capital investments. Overall, Kontoor Brands Inc's return on total capital demonstrates varying performance levels over the years, reflecting the company's financial efficiency and effectiveness in utilizing its total capital resources.