Carter’s Inc (CRI)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 1.64 1.28 1.21 1.45 1.02 2.30 1.89 1.85 1.96 1.27 1.79 2.01 2.10 2.79 2.77 3.51 3.39 2.76 2.85 3.78
Receivables turnover 15.90 12.37 22.61 13.75 15.86 12.41 18.28 12.87 14.81 12.84 20.40 13.05 16.05 11.85 19.30 15.37 14.02 11.95 20.72 14.41
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
Working capital turnover 4.96 4.93 5.68 4.87 4.78 4.15 4.75 5.07 2.90 2.56 2.49 2.49 2.60 3.01 2.69 2.93 5.57 4.74 6.14 5.66

Carter’s Inc has seen fluctuations in its activity ratios over the past few quarters.

1. Inventory turnover: The company's inventory turnover has varied from a low of 1.02 to a high of 3.78 over the periods analyzed. The average inventory turnover appears to be moderate, indicating that the company is not efficiently managing its inventory compared to some periods where the turnover was relatively high.

2. Receivables turnover: Carter’s Inc has experienced fluctuations in its receivables turnover, ranging from 11.85 to 22.61. The company appears to be collecting its receivables at a relatively rapid rate in some periods, which could indicate effective credit management and collection efforts.

3. Payables turnover: The payables turnover ratio has fluctuated significantly, with values ranging from 2.36 to 18.17. This indicates that the company is varying its payment cycles to suppliers, which could have implications for working capital management and relationships with suppliers.

4. Working capital turnover: Carter’s Inc's working capital turnover has shown variability, with values ranging from 2.49 to 6.14. The company has been able to effectively utilize its working capital to generate sales in some periods, while in others, the efficiency has been relatively low.

Overall, the analysis of these activity ratios suggests that Carter’s Inc may need to focus on improving its inventory management, maintaining consistent receivables and payables turnover, and maximizing the efficiency of working capital utilization to enhance operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 222.41 285.62 302.07 252.48 358.60 159.01 192.83 196.78 185.90 287.12 204.27 182.04 173.64 130.74 131.72 103.86 107.82 132.31 127.90 96.46
Days of sales outstanding (DSO) days 22.96 29.52 16.14 26.54 23.01 29.42 19.97 28.35 24.65 28.42 17.89 27.98 22.74 30.79 18.91 23.75 26.03 30.54 17.62 25.33
Number of days of payables days 100.27 102.25 124.68 74.10 127.18 56.23 91.67 82.23 116.82 154.50 117.63 108.71 136.81 95.73 89.76 34.35 33.34 37.65 42.70 20.09

Carter’s Inc's Days of Inventory on Hand (DOH) has shown some variability over the periods provided, ranging from a low of 96.46 days to a high of 358.60 days. The overall trend seems to be fluctuating with some peaks and troughs, indicating potential issues with inventory management efficiency.

In terms of Days of Sales Outstanding (DSO), Carter’s Inc has also shown variability, with a range from 16.14 days to 30.79 days. The trend appears to fluctuate over time, suggesting potential challenges in collecting receivables efficiently.

The Number of Days of Payables indicates the time it takes for Carter’s Inc to pay its suppliers. The company has shown a range from 20.09 days to 154.50 days, implying variability in the payment terms with suppliers.

Overall, the activity ratios for Carter’s Inc suggest some challenges in managing its inventory efficiently, collecting receivables promptly, and maintaining consistent payment practices with its suppliers. The company may need to focus on improving these areas to enhance its overall financial performance and liquidity.

Long-term

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
Fixed asset turnover 15.95 16.44 16.85 17.08 16.60 18.15 18.00 17.32 15.86 15.33 14.42 12.60 11.41 11.36 11.10 11.22 10.99 10.61 10.45 10.22
Total asset turnover 1.23 1.28 1.31 1.35 1.29 1.27 1.31 1.16 1.07 1.02 1.01 0.95 0.88 0.95 0.94 1.08 1.28 1.21 1.27 1.29

Carter’s Inc's long-term activity ratios provide insights into its efficiency in utilizing its fixed assets and total assets to generate sales. The fixed asset turnover ratio has shown a fluctuating trend over the periods analyzed, ranging from a low of 10.22 to a high of 18.15. This ratio indicates that Carter’s Inc has been effectively using its fixed assets to generate revenue, with a higher turnover implying more efficient asset utilization.

In contrast, the total asset turnover ratio has also exhibited variability, fluctuating between 0.88 and 1.35. This ratio reflects the company's overall efficiency in using all its assets (fixed and current) to generate sales. A higher total asset turnover implies better efficiency in asset utilization, indicating that Carter’s Inc has been effectively managing and generating revenue from its total asset base.

Overall, the company's long-term activity ratios suggest that Carter’s Inc has generally maintained a solid level of asset utilization efficiency over the periods analyzed, with some fluctuations reflecting changes in business operations and market conditions. Monitoring these ratios over time can provide valuable insights into the company's operational performance and its ability to generate sales from its asset base.