Carter’s Inc (CRI)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		1.64	1.28	1.21	1.45	1.02	2.30	1.89	1.85	1.96	1.27	1.79	2.01	2.10	2.79	2.77	3.51	3.39	2.76	2.85	3.78
DOH	days	222.41	285.62	302.07	252.48	358.60	159.01	192.83	196.78	185.90	287.12	204.27	182.04	173.64	130.74	131.72	103.86	107.82	132.31	127.90	96.46

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.64
= 222.41

Based on the data provided, Carter’s Inc's days of inventory on hand (DOH) has experienced fluctuations over the past few years. DOH refers to the average number of days it takes for a company to sell its inventory. A lower DOH value indicates that the company is more efficient in managing its inventory.

The analysis reveals that there was a significant increase in DOH from 2019 to 2020, followed by a gradual decrease until the first quarter of 2021. However, there was a sudden increase in DOH in the fourth quarter of 2021, which peaked at 358.60 days, indicating a potential issue with inventory management efficiency during that period.

Subsequently, there was a notable improvement in the management of inventory, with DOH declining steadily until the second quarter of 2022. The company achieved its lowest DOH value of 96.46 days in the first quarter of 2020, suggesting improved inventory turnover efficiency during that period.

However, from the second quarter of 2022 onwards, there was a fluctuation in DOH, indicating possible challenges in maintaining inventory management efficiency. The most recent DOH value as of December 31, 2023, at 222.41 days, shows that the company is taking longer to sell its inventory compared to the prior quarter.

Overall, it is crucial for Carter’s Inc to closely monitor and address the fluctuations in DOH to ensure optimal inventory management practices and enhance overall operational efficiency.