Carter’s Inc (CRI)

Payables 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
Payables US$ in thousands 248,200 273,909 313,796 191,406 242,149 222,210 281,333 180,181 264,078 318,026 408,006 284,034 407,044 388,726 356,826 334,831 472,140 473,473 458,075 187,199
Payables turnover 3.38 2.58 2.31 3.98 3.11 2.99 2.47 4.21 2.87 6.49 3.98 4.44 3.12 2.36 3.10 3.36 2.67 3.81 4.07 10.62

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $838,311K ÷ $248,200K
= 3.38

The payables turnover ratio measures how efficiently a company pays its suppliers by comparing its average accounts payable to its cost of goods sold. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.

Analyzing the payables turnover ratio for Carter’s Inc over the past few years, we see fluctuations in the ratio. The ratio decreased from 10.62 as of March 31, 2020, to 2.67 as of December 31, 2020, indicating a significant decrease in the speed at which the company paid its suppliers. This downward trend continued into 2021, with the ratio hovering around 3-4 range.

In the following years, the payables turnover ratio remained relatively low, with some fluctuations. The ratio increased to 6.49 as of September 30, 2022, suggesting an improvement in the company's payment practices. However, it dropped back to 2.47 by June 30, 2023, before gradually increasing again.

Overall, the payables turnover ratio for Carter’s Inc has displayed variability, indicating fluctuations in the company's payment efficiency over the years. Further analysis and comparison with industry peers may provide additional insights into the company's working capital management and supplier relationships.