Kontoor Brands Inc (KTB)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 342,289 | 312,307 | 354,055 | 283,500 | 122,928 |
| Interest expense | US$ in thousands | 40,824 | 40,408 | 34,919 | 38,900 | 49,992 |
| Interest coverage | 8.38 | 7.73 | 10.14 | 7.29 | 2.46 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $342,289K ÷ $40,824K
= 8.38
The interest coverage ratio of Kontoor Brands Inc has shown positive trends over the years, indicating its improving ability to cover interest expenses with operating income. In December 2020, the interest coverage ratio was 2.46, suggesting the company's earnings were just sufficient to cover interest payments. However, by December 2024, the interest coverage ratio had increased to 8.38, signifying a significant improvement in the company's financial health. This upward trend in the interest coverage ratio reflects Kontoor Brands Inc's strengthened capacity to meet its interest obligations comfortably and indicates a positive outlook for its financial stability.
Peer comparison
Dec 31, 2024