Kontoor Brands Inc (KTB)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	1,645,440	1,625,930	1,608,320	1,643,570	1,582,260	1,653,010	1,543,150	1,589,050	1,533,020	1,613,180	1,517,840	1,519,680	1,545,820	1,668,720	1,572,770	1,901,800	1,517,160	1,585,760	1,588,200
Debt-to-assets ratio		0.46	0.47	0.48	0.50	0.49	0.50	0.51	0.50	0.52	0.48	0.52	0.52	0.57	0.61	0.72	0.73	0.60	0.62	0.62

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 some fluctuations over the periods provided. The ratio is a measure of a company's financial leverage and indicates the proportion of a company's assets that are financed by debt.

From Dec 31, 2019, to Dec 31, 2023, the debt-to-assets ratio has exhibited a generally increasing trend, starting at 0.60 and reaching 0.46 as of Dec 31, 2023. The ratio decreased from 0.72 in Jun 30, 2020, to 0.46 in Dec 31, 2023, suggesting improved debt management or asset growth relative to debt.

However, although the ratio has decreased compared to earlier periods, it is essential to note that a higher ratio indicates a higher level of financial risk and dependency on debt financing. It is important for stakeholders to monitor this ratio closely to ensure the company's debt levels remain sustainable and in line with its overall financial health.