Kontoor Brands Inc (KTB)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	763,921	782,619	791,317	887,957	913,269
Total assets	US$ in thousands	1,645,440	1,582,260	1,533,020	1,545,820	1,517,160
Debt-to-assets ratio		0.46	0.49	0.52	0.57	0.60

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $763,921K ÷ $1,645,440K
= 0.46

The debt-to-assets ratio of Kontoor Brands Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing in relation to the company's total assets. The ratio decreased from 0.60 in 2019 to 0.46 in 2023. This trend suggests that the company has been managing its debt levels more effectively, potentially reducing financial risk and enhancing financial stability. A lower debt-to-assets ratio generally indicates a stronger financial position, as it implies a higher proportion of assets are funded through equity rather than debt. Investors and creditors may view this positively as it demonstrates prudent financial management and lower leverage, which could lead to improved creditworthiness and profitability in the long run.