Kontoor Brands Inc (KTB)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	763,921	782,619	791,317	887,957	913,269
Total stockholders’ equity	US$ in thousands	371,913	250,757	148,138	84,641	69,257
Debt-to-equity ratio		2.05	3.12	5.34	10.49	13.19

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $763,921K ÷ $371,913K
= 2.05

The debt-to-equity ratio of Kontoor Brands Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt in relation to equity for financing its operations. The ratio was 13.19 in 2019, indicating a higher proportion of debt relative to equity. However, the ratio has steadily decreased to 2.05 by the end of 2023. This suggests that the company has been actively managing its debt levels and gradually improving its financial leverage structure. A lower debt-to-equity ratio typically signifies a lower financial risk and a stronger financial position for the company. It is important to note that a decreasing trend in the debt-to-equity ratio could potentially indicate improved financial health and stability for Kontoor Brands Inc.