Kontoor Brands Inc (KTB)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	400,055	371,913	250,757	148,138	84,641
Debt-to-capital ratio		0.65	0.67	0.76	0.84	0.91

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $740,315K ÷ ($740,315K + $400,055K)
= 0.65

The debt-to-capital ratio for Kontoor Brands Inc has shown a declining trend over the past five years, decreasing from 0.91 as of December 31, 2020, to 0.65 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt in comparison to its total capital structure. A decreasing debt-to-capital ratio generally suggests a healthier financial position, as it signifies lower financial risk and a stronger ability to withstand economic downturns. Kontoor Brands Inc's decreasing trend in the debt-to-capital ratio may imply that the company is effectively managing its debt levels and capital structure to enhance its overall financial stability and strength.