Carter’s Inc (CRI)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.13	1.60	1.98	2.10	3.39
DOH	days	171.39	228.38	184.64	173.64	107.82

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.13
= 171.39

Carter’s Inc days of inventory on hand (DOH) has shown fluctuations over the past five years. The trend indicates that the company held inventory for an average of 171.39 days as of Dec 31, 2023, a decrease from the previous year's 228.38 days. This suggests an improvement in managing inventory levels, possibly through more efficient inventory control and demand forecasting.

Comparing the current DOH to the past five years, it is higher than the DOH of 2019 but lower than 2020 and 2022. The increase from 2019 to 2023 could indicate potential challenges in managing inventory turnover efficiency during those years.

A lower DOH implies that Carter’s Inc is selling inventory at a faster rate compared to previous years, which can lead to lower holding costs, reduced risk of obsolescence, and improved cash flow. However, it is essential for the company to strike a balance between maintaining sufficient inventory levels to meet customer demand and avoiding excess inventory that ties up capital.

Overall, the downward trend in DOH for Carter’s Inc indicates progress in inventory management efficiency, but it is important for the company to continue monitoring and optimizing its inventory levels to drive profitability and sustainable growth.