Carter’s Inc (CRI)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,186,310 | 1,143,900 | 1,190,010 | 1,280,440 | 1,259,680 |
| Payables | US$ in thousands | 248,200 | 242,149 | 264,078 | 407,044 | 472,140 |
| Payables turnover | 4.78 | 4.72 | 4.51 | 3.15 | 2.67 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,186,310K ÷ $248,200K
= 4.78
Based on the data provided, Carter’s Inc has shown an improvement in its payables turnover ratio over the past years. The payables turnover ratio indicates how efficiently the company is managing its accounts payable.
In 2020, the payables turnover ratio was 2.67, showing that on average, Carter’s Inc paid off its suppliers 2.67 times during the year. By 2024, this ratio had increased to 4.78, indicating that the company's ability to pay off its suppliers had significantly improved.
The increasing trend in the payables turnover ratio suggests that Carter’s Inc has been able to better manage its accounts payable and settle its obligations to suppliers more efficiently in recent years. This improvement may indicate stronger supplier relationships, better negotiation terms, or more effective working capital management strategies within the company.
Overall, the upward trend in Carter’s Inc payables turnover ratio signifies a positive development in the company's financial operations, reflecting improved efficiency in managing its accounts payable.
Peer comparison
Dec 31, 2024