Carter’s Inc (CRI)

Payables 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
Payables	US$ in thousands	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	183,641	205,782	232,869	108,221
Payables turnover		3.64	3.57	2.93	4.93	2.87	6.49	3.98	4.44	3.12	2.36	3.10	3.36	2.67	3.81	4.07	10.62	10.95	9.70	8.55	18.17

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $881,464K ÷ $242,149K
= 3.64

The payables turnover ratio for Carter’s Inc fluctuated over the past few quarters, indicating changes in the company's ability to manage its trade payables efficiently. The ratio ranged from a low of 2.36 in Sep 2021 to a high of 18.17 in Dec 2019.

A higher turnover ratio suggests that Carter’s Inc is paying its suppliers more frequently, which can indicate strong liquidity and effective management of accounts payable. On the other hand, a lower turnover ratio may indicate slower payments to suppliers, potential liquidity issues, or possibly negotiating better payment terms with suppliers.

Overall, analyzing the payables turnover ratio alongside other financial metrics can provide a more comprehensive understanding of Carter’s Inc's financial performance and operational efficiency.