Kontoor Brands Inc (KTB)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	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	913,269	980,607	979,687
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
Return on total capital		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, 2023 calculation

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

Kontoor Brands Inc's return on total capital has shown variability over the past few quarters. The return on total capital was relatively high in the most recent quarter at 27.50%, indicating that the company generated $0.275 in profit for every $1 of total capital employed. This figure was a slight decrease from the previous quarter's 28.93% but remained robust.

Looking back over the past year, the return on total capital has generally been healthy, with peaks reaching as high as 36.19% in the second quarter of 2022. This suggests that Kontoor Brands has been effectively utilizing its total capital to generate profits, providing a solid return to its investors.

However, it is important to note that there have been fluctuations in the return on total capital, with some quarters showing lower returns, such as 6.09% in the second quarter of 2020. The company's ability to consistently maintain a healthy return on total capital is crucial for long-term financial performance and sustainability.

Overall, the recent return on total capital of 27.50% indicates that Kontoor Brands Inc continues to efficiently deploy its capital to generate profits, although monitoring future trends will be important to assess the company's ongoing financial performance.