Carter’s Inc (CRI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.36 | 2.13 | 1.60 | 1.98 | 2.10 | |
| DOH | days | 154.56 | 171.39 | 228.38 | 184.64 | 173.64 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.36
= 154.56
The days of inventory on hand (DOH) for Carter’s Inc have shown fluctuations over the past five years. In December 2020, the company had 173.64 days of inventory on hand, which increased to 184.64 days by December 2021. This trend continued with a significant rise to 228.38 days by December 2022. However, the DOH decreased to 171.39 days by December 2023 and further to 154.56 days by December 2024.
A high DOH indicates that Carter’s Inc may be holding excess inventory, which can tie up capital and increase storage costs. On the contrary, a low DOH may suggest efficient inventory management but could also point to potential stockouts and lost sales opportunities. Therefore, the company should carefully monitor and optimize its inventory levels to strike a balance between holding sufficient inventory and minimizing carrying costs.
Peer comparison
Dec 31, 2024