Kontoor Brands Inc (KTB)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	1,650,540	1,653,120	1,612,440	1,661,440	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
Debt-to-assets ratio		0.45	0.45	0.46	0.46	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

December 31, 2024 calculation

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

The debt-to-assets ratio for Kontoor Brands Inc has shown a downward trend over the past few years, indicating improved financial health in terms of leveraging its assets with debt.

From March 31, 2020, to December 31, 2024, the ratio decreased steadily from 0.73 to 0.45. This signifies that the company's debt levels relative to its total assets have been declining. A lower debt-to-assets ratio suggests that the company has a lower dependence on debt financing compared to its total asset base.

The ratio fluctuates marginally between 0.45 and 0.52 from December 31, 2021, to March 31, 2024, with minor variations. This could be due to changes in either the company's debt levels or the value of its assets during these periods.

Overall, the decreasing trend in the debt-to-assets ratio indicates that Kontoor Brands Inc is managing its debt efficiently and potentially reducing financial risks associated with high levels of indebtedness. However, continuous monitoring of this ratio is crucial to ensure sustainable financial stability in the long term.