Kontoor Brands Inc (KTB)

Debt-to-equity 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-equity ratio		1.85	2.05	3.12	5.34	10.49

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $740,315K ÷ $400,055K
= 1.85

The debt-to-equity ratio of Kontoor Brands Inc has shown a significant downward trend over the past five years, indicating a decreasing reliance on debt financing relative to equity. In December 2020, the ratio stood at 10.49, reflecting a high level of debt compared to equity. However, by December 2024, the ratio had decreased to 1.85, demonstrating a substantial decrease in financial leverage.

This decreasing trend in the debt-to-equity ratio suggests that Kontoor Brands Inc has been gradually deleveraging its capital structure and reducing its financial risk. A lower debt-to-equity ratio is generally seen as a positive indicator, as it implies a lower level of financial risk and greater financial stability for the company. Investors and stakeholders may view this trend positively, as it indicates a more conservative approach to financing operations and potential improved financial health for Kontoor Brands Inc.