Carter’s Inc (CRI)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	881,464	793,212	823,592	887,492	757,863	2,064,344	1,624,529	1,260,720	1,271,797	918,335	1,107,169	1,124,172	1,259,684	1,805,179	1,862,654	1,988,971	2,010,736	1,995,117	1,990,766	1,966,615
Inventory	US$ in thousands	537,125	620,700	681,600	613,900	744,573	899,326	858,258	679,700	647,742	722,396	619,617	560,683	599,262	646,608	672,205	565,932	593,987	723,242	697,559	519,752
Inventory turnover		1.64	1.28	1.21	1.45	1.02	2.30	1.89	1.85	1.96	1.27	1.79	2.01	2.10	2.79	2.77	3.51	3.39	2.76	2.85	3.78

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $881,464K ÷ $537,125K
= 1.64

Carter’s Inc inventory turnover has fluctuated over the past 20 quarters. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. It indicates how efficiently a company manages its inventory.

Carter’s inventory turnover ranged from a low of 1.02 in December 2022 to a high of 3.78 in March 2019. The highest inventory turnover was observed in the first quarter of 2019, indicating that Carter’s was able to sell and replenish its inventory more than three times during that period. This suggests efficient inventory management and a faster sales cycle.

On the other hand, the lowest inventory turnover was recorded in December 2022, reflecting a slower sales cycle and potentially excess inventory on hand.

Overall, Carter’s inventory turnover has shown variability, with some quarters indicating stronger inventory management practices than others. Further analysis and comparison with industry benchmarks could provide more insights into the company's inventory management efficiency.