Carter’s Inc (CRI)

Payables 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
Payables	US$ in thousands	242,149	264,078	407,044	472,140	183,641
Payables turnover		4.72	4.51	3.15	2.67	10.95

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,143,900K ÷ $242,149K
= 4.72

The payables turnover ratio for Carter’s Inc has exhibited fluctuations over the past five years. In 2019, it was significantly high at 10.95, indicating that the company was able to pay off its accounts payable almost 11 times during that year. However, in 2020, the ratio dropped to 2.67, suggesting a decrease in the frequency of paying off accounts payable. In 2021, there was a slight improvement with a ratio of 3.15, indicating a partial recovery.

The most notable increase in the payables turnover ratio occurred in 2022, reaching 4.51, suggesting the company managed its accounts payable more efficiently compared to the previous year. This trend continued in 2023, with the ratio further improving to 4.72. Overall, the increasing trend in the payables turnover ratio from 2020 to 2023 indicates that Carter’s Inc has been more effective in managing its accounts payable and paying off its obligations in a timely manner.