Kontoor Brands Inc (KTB)

Solvency ratios

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
Debt-to-assets ratio 0.45 0.45 0.46 0.46 0.46 0.47 0.48 0.50 0.49 0.50 0.51 0.50 0.52 0.48 0.52 0.52 0.57 0.61 0.72 0.73
Debt-to-capital ratio 0.65 0.68 0.67 0.66 0.67 0.69 0.71 0.73 0.76 0.80 0.81 0.81 0.84 0.81 0.84 0.85 0.91 0.98 1.04 1.01
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 — —
Financial leverage ratio 4.13 4.63 4.39 4.29 4.42 4.68 4.98 5.49 6.31 7.94 8.61 8.63 10.35 8.73 9.86 11.32 18.26 64.11 — —

Kontoor Brands Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has been decreasing steadily from 0.73 in March 2020 to 0.45 in December 2024, reflecting an improvement in the company's ability to cover its debts with its assets. This suggests a positive trend in the company's solvency.

Similarly, the Debt-to-capital ratio has been declining over the years, indicating a decreasing reliance on debt financing compared to equity financing. This trend signals a more financially stable position for Kontoor Brands Inc.

The Debt-to-equity ratio shows a consistent decline from 39.25 in September 2020 to 1.85 in December 2024. This indicates that the company has reduced its debt relative to equity, which is a positive sign of long-term solvency.

The Financial leverage ratio has also been decreasing steadily, reflecting a declining level of financial risk for the company. The ratio going down from 64.11 in September 2020 to 4.13 in December 2024 demonstrates improved financial strength and lower dependency on debt financing.

In conclusion, Kontoor Brands Inc's solvency ratios have shown a positive trend over the years, indicating improved financial stability and the company's ability to meet its long-term obligations.

Coverage ratios

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
Interest coverage 8.35 8.13 7.90 7.69 7.73 8.03 8.12 9.11 10.14 9.01 9.79 8.51 7.29 7.05 6.03 4.25 2.46 2.31 1.27 3.06

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is in a better position to cover its interest expenses.

Analyzing the interest coverage of Kontoor Brands Inc over the past few years, we observe fluctuations in the ratio. In March 2020, the interest coverage was 3.06, indicating the company's ability to cover its interest payments 3.06 times. However, this ratio decreased to 1.27 in June 2020, suggesting a potential strain on meeting interest obligations.

Subsequently, there was an improvement in the interest coverage ratio, reaching a peak of 10.14 in December 2022, indicating a strong ability to cover interest expenses nearly ten times over. The ratio remained relatively stable between 7.69 to 8.35 from March 2024 to December 2024.

Overall, Kontoor Brands Inc has shown variability in its interest coverage ratio over the periods analyzed, with fluctuations reflecting changes in the company's financial health and ability to meet interest payment obligations. The recent trend indicates a relatively stable and healthy interest coverage ratio, suggesting a more favorable position in managing its debt obligations.