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.
Peer comparison
Dec 31, 2024