Kontoor Brands Inc (KTB)

Debt-to-equity 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-equity ratio		1.85	2.09	2.04	1.96	2.05	2.21	2.39	2.77	3.12	3.96	4.39	4.29	5.34	4.19	5.08	5.89	10.49	39.25	—	—

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 consistent downward trend from 39.25 in September 2020 to 1.85 in December 2024. This trend indicates a decreasing reliance on debt financing in comparison to equity over the years. A lower debt-to-equity ratio is generally viewed positively as it signifies lower financial risk and healthier financial stability. The decreasing ratio suggests that the company has been reducing its debt levels relative to equity, which could potentially improve its financial flexibility and solvency. Overall, the decreasing trend in the debt-to-equity ratio for Kontoor Brands Inc indicates a prudent financial management strategy aimed at maintaining a healthy balance between debt and equity in its capital structure.