Kontoor Brands Inc (KTB)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	400,055	356,927	367,151	387,193	371,913	347,624	323,251	299,288	250,757	208,099	179,189	184,090	148,138	184,754	153,886	134,264	84,641	26,028	-44,889	-18,485
Debt-to-capital ratio		0.65	0.68	0.67	0.66	0.67	0.69	0.71	0.73	0.76	0.80	0.81	0.81	0.84	0.81	0.84	0.85	0.91	0.98	1.04	1.01

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 of Kontoor Brands Inc has shown a declining trend over the past few years, indicating an improvement in the company's capital structure and financial health. As of December 31, 2024, the debt-to-capital ratio stands at 0.65, which means that debt accounts for 65% of the company's total capital, while equity represents the remaining 35%.

The decreasing trend in the debt-to-capital ratio from 1.01 in March 2020 to 0.65 in December 2024 suggests that Kontoor Brands Inc has been reducing its reliance on debt financing and gradually strengthening its financial position. This trend indicates that the company may be managing its debt levels effectively and potentially reducing financial risk associated with high debt levels.

Overall, the declining debt-to-capital ratio reflects positively on Kontoor Brands Inc's ability to manage its debt obligations and indicates an improved balance between debt and equity in its capital structure.