Carter’s Inc (CRI)

Days of sales outstanding (DSO)

		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
Receivables turnover		15.90	12.37	22.61	13.75	15.86	12.41	18.28	12.87	14.81	12.84	20.40	13.05	16.05	11.85	19.30	15.37	14.02	11.95	20.72	14.41
DSO	days	22.96	29.52	16.14	26.54	23.01	29.42	19.97	28.35	24.65	28.42	17.89	27.98	22.74	30.79	18.91	23.75	26.03	30.54	17.62	25.33

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.90
= 22.96

The Days Sales Outstanding (DSO) for Carter’s Inc over the past couple of years has fluctuated between 16.14 days to 30.79 days. A lower DSO indicates that the company is efficient in collecting payments from customers, while a higher DSO suggests that there may be delays in collecting accounts receivable.

From the data provided, we can observe that the DSO has shown some variability, with periods of lower DSO levels followed by spikes in DSO. For example, in June 2021 and December 2020, the DSO was at a relatively low level (17.89 days and 22.74 days, respectively), indicating a faster collection of sales. However, in September 2020 and March 2020, the DSO increased to higher levels (30.79 days and 26.03 days, respectively), suggesting potential challenges in collecting receivables in those periods.

Overall, Carter’s Inc should strive to maintain a balance in its DSO levels to ensure efficient cash flow management and minimize the risk of bad debts. Monitoring DSO over time and comparing it to industry benchmarks can help the company assess its credit and collection policies and identify areas for improvement.