Carter’s Inc (CRI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,911,830	3,150,090	3,425,780	2,967,910	3,519,290
Property, plant and equipment	US$ in thousands	183,111	189,822	216,004	262,345	320,168
Fixed asset turnover		15.90	16.59	15.86	11.31	10.99

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,911,830K ÷ $183,111K
= 15.90

Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. The higher the fixed asset turnover ratio, the better a company is at generating sales from its fixed assets. In the case of Carter’s Inc, the fixed asset turnover has been consistently increasing over the past five years, from 10.99 in 2019 to 15.90 in 2023. This indicates that the company has been improving its efficiency in generating sales from its fixed assets over time.

A high fixed asset turnover ratio suggests that Carter’s Inc is effectively utilizing its fixed assets to generate revenue. This could be due to factors such as efficient asset management, effective production processes, or strong sales performance. However, it is important to note that a very high fixed asset turnover ratio could also indicate that the company may be underutilizing its fixed assets, which might prompt the need for further analysis.

Overall, the increasing trend in Carter’s Inc fixed asset turnover ratio reflects positively on the company's operational efficiency and asset utilization, indicating effective management of fixed assets to drive sales growth.