Kontoor Brands Inc (KTB)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	341,056	332,308	317,039	303,137	312,307	322,942	313,370	338,729	354,055	337,089	349,628	298,976	283,500	276,762	273,509	216,118	122,928	118,180	66,068	142,797
Long-term debt	US$ in thousands	740,315	744,986	749,654	759,246	763,921	768,595	773,270	827,944	782,619	824,793	786,968	789,143	791,317	773,413	782,262	790,930	887,957	1,021,710	1,130,460	1,388,740
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
Return on total capital		29.91%	30.16%	28.39%	26.44%	27.50%	28.93%	28.58%	30.05%	34.26%	32.64%	36.19%	30.72%	30.18%	28.88%	29.22%	23.36%	12.64%	11.28%	6.09%	10.42%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $341,056K ÷ ($740,315K + $400,055K)
= 29.91%

Kontoor Brands Inc's return on total capital has shown fluctuating trends over the past few years. The ratio increased from 10.42% as of March 31, 2020, to a peak of 36.19% as of June 30, 2022, representing a significant improvement in the company's ability to generate returns from its total invested capital.

Following this peak, there was a slight decline in the ratio, reaching 27.50% by December 31, 2023. However, the ratio rebounded in the following periods, reaching 30.16% as of September 30, 2024. This indicates that the company has been efficient in utilizing its total capital to generate returns for its investors.

Overall, Kontoor Brands Inc's return on total capital has displayed volatility but has generally shown an increasing trend over the period analyzed. Investors and stakeholders may view this positively as it suggests the company's ability to effectively deploy its capital to generate profits. It is essential for the company to maintain this positive momentum in efficiently utilizing its total capital in the future to sustain growth and profitability.