Kontoor Brands Inc (KTB)

Debt-to-equity ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Long-term debt	US$ in thousands	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	913,269	980,607	979,687
Total stockholders’ equity	US$ in thousands	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	69,257	55,571	82,168
Debt-to-equity ratio		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	—	—	13.19	17.65	11.92

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 fluctuations over the past few quarters, indicating changes in the company's capital structure and financial leverage. The ratio has trended upwards from 2.05 in Dec 2023 to a high of 5.34 in Mar 2022 before dropping to 2.05 in Dec 2023 again. This trend suggests a significant increase in debt relative to equity, which may raise concerns about the company's ability to meet its financial obligations.

The sharp increase in the debt-to-equity ratio from 3.12 in Dec 2022 to 10.49 in Dec 2020 and further to 39.25 in Sep 2020 is particularly notable and could indicate a significant increase in debt levels or a decrease in equity during those periods. These high ratios may raise questions about the company's financial stability and its ability to manage its debt effectively.

It is essential for investors and stakeholders to closely monitor Kontoor Brands Inc's debt-to-equity ratio over time to assess the company's financial health, risk profile, and ability to generate returns for its investors. An increasing trend in the ratio may indicate higher financial risk, while a decreasing trend could signal improved financial health and stability.