Kontoor Brands Inc (KTB)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	740,315	763,921	782,619	791,317	887,957
Total assets	US$ in thousands	1,650,540	1,645,440	1,582,260	1,533,020	1,545,820
Debt-to-assets ratio		0.45	0.46	0.49	0.52	0.57

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $740,315K ÷ $1,650,540K
= 0.45

Based on the data provided, Kontoor Brands Inc's debt-to-assets ratio has shown a declining trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 0.57 in 2020 to 0.45 in 2024.

A decreasing debt-to-assets ratio indicates that the company has been able to reduce its level of debt in relation to its total assets. This trend suggests an improvement in the company's financial health and risk profile.

A lower debt-to-assets ratio generally indicates that the company is less reliant on debt financing to support its operations and expansion, which can be viewed positively by investors and creditors. It also signifies that a higher proportion of the company's assets are financed through equity, which can enhance the company's financial stability.

Overall, the declining trend in Kontoor Brands Inc's debt-to-assets ratio reflects a potentially positive financial performance and management strategy in terms of managing debt levels relative to its asset base.