Carter’s Inc (CRI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,143,900	1,190,010	1,280,440	1,259,680	2,010,740
Inventory	US$ in thousands	537,125	744,573	647,742	599,262	593,987
Inventory turnover		2.13	1.60	1.98	2.10	3.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,143,900K ÷ $537,125K
= 2.13

Carter’s Inc's inventory turnover has been fluctuating over the past five years. The company's inventory turnover ratio was 2.13 in 2023, indicating that the company's inventory was turned over approximately 2.13 times during the year. This represents an improvement from the previous year's ratio of 1.60 in 2022 but is slightly lower than the 2021 ratio of 1.98.

The inventory turnover ratio of 2.10 in 2020 indicates that the company's inventory turnover increased compared to 2019 when the ratio was 3.39, which implies that the company was holding less inventory relative to its sales volume in 2020.

Overall, while Carter’s Inc's inventory turnover has shown some fluctuations, it is important to further analyze the company's inventory management practices to understand the reasons behind these changes and to assess the efficiency of its inventory turnover relative to industry standards.