Carter’s Inc (CRI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		14.60	15.84	15.86	14.81	15.91
DSO	days	25.01	23.04	23.01	24.65	22.94

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.60
= 25.01

To analyze Carter’s Inc days of sales outstanding (DSO) over the years based on the provided data:

1. The DSO has shown a slight increase over the years, from 22.94 days as of December 31, 2020, to 25.01 days as of December 31, 2024.

2. Despite some fluctuations, the DSO has generally remained within a relatively narrow range, indicating that the company has been able to effectively manage its accounts receivable.

3. The increase in DSO from 2020 to 2024 suggests a possible lengthening of the time it takes for Carter’s Inc to collect payments from its customers.

4. It is important for the company to monitor and potentially improve its DSO to ensure efficient cash flow management and timely collection of receivables.

5. Overall, the DSO trend reflects the company's credit policies, customer payment behavior, and effectiveness in managing its accounts receivable turnover.