Carter’s Inc (CRI)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Receivables turnover 14.60 11.38 21.48 12.85 15.84 12.33 22.54 13.71 15.86 12.41 18.28 12.87 14.81 12.84 20.40 13.05 16.05 11.85 19.30 15.37
DSO days 25.00 32.07 16.99 28.41 23.04 29.61 16.19 26.62 23.01 29.42 19.97 28.35 24.65 28.42 17.89 27.98 22.74 30.79 18.91 23.75

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.60
= 25.00

Based on the data provided, Carter’s Inc has experienced fluctuations in its Days of Sales Outstanding (DSO) metric over the quarters analyzed. DSO represents the average number of days it takes for the company to collect payment after making a sale.

From March 31, 2020, to June 30, 2020, there was a decrease in DSO from 23.75 days to 18.91 days, indicating an improvement in the company's collection efficiency. However, this trend was reversed in the following quarter, with DSO increasing to 30.79 days on September 30, 2020.

The DSO continued to fluctuate throughout the subsequent quarters, with some periods showing improvements in collection times (e.g., June 30, 2021, with 17.89 days) and others experiencing delays in collections (e.g., September 30, 2021, with 28.42 days).

Overall, Carter’s Inc maintained its DSO within a range of approximately 16 to 32 days during the analyzed period. It is essential for the company to monitor DSO closely, as a lower DSO signifies efficient accounts receivable management and improved cash flow, while a higher DSO can indicate potential liquidity issues or credit risk challenges.