Carter’s Inc (CRI)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	838,311	707,685	724,455	762,448	753,427	665,175	695,555	759,455	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
Inventory	US$ in thousands	502,332	607,384	599,295	473,362	537,125	620,669	681,573	613,921	744,573	899,326	858,258	679,700	647,742	722,396	619,617	560,683	599,262	646,608	672,205	565,932
Inventory turnover		1.67	1.17	1.21	1.61	1.40	1.07	1.02	1.24	1.02	2.30	1.89	1.85	1.96	1.27	1.79	2.01	2.10	2.79	2.77	3.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $838,311K ÷ $502,332K
= 1.67

Carter’s Inc inventory turnover has exhibited a fluctuating trend over the reported period. Initially standing at 3.51 on March 31, 2020, the ratio gradually decreased to 1.27 on September 30, 2021, indicating a possible inefficiency in managing inventory levels. Subsequently, there was a slight recovery to 2.30 on September 30, 2022, before dropping significantly to 1.02 on December 31, 2022, suggesting potential challenges in optimizing inventory utilization.

The company managed to improve the ratio to 1.61 on March 31, 2024, indicating a positive effort to enhance inventory management practices. However, the ratio decreased to 1.17 on September 30, 2024, showcasing a possible need for further efficiency improvements in inventory turnover.

Overall, the inventory turnover ratios for Carter’s Inc demonstrate a varying performance in efficiently converting inventory into sales during the examined period. Continued monitoring and potential strategic adjustments may be necessary to optimize inventory turnover and enhance the company's operational efficiency.