Carter’s Inc (CRI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,921,271	2,974,223	3,000,099	3,080,086	3,150,547	3,294,716	3,361,194	3,420,196	3,425,819	3,353,810	3,345,468	3,133,951	2,993,623	3,120,152	3,196,123	3,409,921	3,519,290	3,503,790	3,484,678	3,447,489
Property, plant and equipment	US$ in thousands	183,111	180,888	178,100	180,383	189,822	181,575	186,778	197,515	216,004	218,828	231,944	248,799	262,345	274,574	287,941	303,919	320,168	330,371	333,600	337,475
Fixed asset turnover		15.95	16.44	16.85	17.08	16.60	18.15	18.00	17.32	15.86	15.33	14.42	12.60	11.41	11.36	11.10	11.22	10.99	10.61	10.45	10.22

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,921,271K ÷ $183,111K
= 15.95

The fixed asset turnover ratio indicates Carter’s Inc’s efficiency in generating sales revenue from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets efficiently to generate sales.

From the data provided, we observe fluctuations in Carter’s Inc's fixed asset turnover over the quarters. The trend shows an overall increasing pattern, starting from a lower ratio of 10.22 in March 2019 and reaching a peak of 18.15 in September 2022. This suggests that the company has been improving its efficiency in utilizing fixed assets to generate sales revenue.

In the most recent quarter, ending on December 31, 2023, Carter’s Inc had a fixed asset turnover ratio of 15.95. This indicates that for every dollar invested in fixed assets, the company generated approximately $15.95 in sales. The relatively high ratio suggests that the company continues to effectively leverage its fixed assets to drive revenue.

Overall, the upward trend in Carter’s Inc's fixed asset turnover ratio reflects the company's efforts to maximize the productivity of its fixed assets and enhance shareholder value through efficient asset utilization.