Kontoor Brands' ROCE Growth: A Repeat Performance of 149% Over Five Years

Kontoor Brands' ROCE has grown 149% over the last five years, with earnings before interest and tax up while capital employed has remained flat. This indicates the company is becoming more efficient at generating returns. The stock has performed well over the past five years, and investors are accounting for these trends.

Kontoor Brands (NYSE: KTB) has shown remarkable growth in its Return on Capital Employed (ROCE) over the last five years, with a 149% increase. This significant improvement in ROCE, while capital employed has remained relatively flat, indicates that the company is becoming more efficient at generating returns. The ROCE, calculated as Earnings Before Interest and Tax (EBIT) divided by (Total Assets - Current Liabilities), has reached 30%, which outpaces the average of 13% in the industry [1].

The company's ROCE growth is particularly noteworthy because it reflects an increase in profitability without requiring additional capital investments. This trend suggests that Kontoor Brands has been able to enhance its operational efficiency, likely through improved processes, cost management, or strategic investments. The company has also demonstrated strong performance in the stock market over the past five years, with investors recognizing and accounting for these trends [3].

Investors should pay close attention to Kontoor Brands' future earnings reports and strategic plans to gauge the sustainability of this trend. While the company's ROCE growth is impressive, it is essential to consider other financial metrics and market conditions to make informed investment decisions.

References:
[1] https://finance.yahoo.com/news/shareholders-enjoy-repeat-kontoor-brands-135311113.html
[3] https://finance.yahoo.com/quote/KTB/news/