Kontoor Brands Inc (KTB)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	1,650,540	1,645,440	1,582,260	1,533,020	1,545,820
Total stockholders’ equity	US$ in thousands	400,055	371,913	250,757	148,138	84,641
Financial leverage ratio		4.13	4.42	6.31	10.35	18.26

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,650,540K ÷ $400,055K
= 4.13

The financial leverage ratio of Kontoor Brands Inc has shown a declining trend over the past five years. It decreased from 18.26 in December 2020 to 4.13 in December 2024. This declining trend indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that the company has been deleveraging its capital structure, which could lead to reduced financial risk and improved financial stability. Overall, the decreasing trend in the financial leverage ratio of Kontoor Brands Inc is a positive sign, indicating a more conservative approach towards managing its debt levels.