Carter’s Inc (CRI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,843,720 | 2,911,830 | 3,150,090 | 3,425,780 | 2,967,910 |
| Receivables | US$ in thousands | 194,834 | 183,774 | 198,587 | 231,354 | 186,512 |
| Receivables turnover | 14.60 | 15.84 | 15.86 | 14.81 | 15.91 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,843,720K ÷ $194,834K
= 14.60
To analyze Carter’s Inc receivables turnover over the years, we calculate the receivables turnover ratio by dividing the net credit sales by the average accounts receivable. The receivables turnover for Carter’s Inc from December 31, 2020, to December 31, 2024, was as follows:
- December 31, 2020: 15.91
- December 31, 2021: 14.81
- December 31, 2022: 15.86
- December 31, 2023: 15.84
- December 31, 2024: 14.60
The trend shows that Carter’s Inc has maintained a relatively stable receivables turnover ratio over the years, indicating efficiency in collecting outstanding receivables. A higher receivables turnover ratio suggests a shorter time for the company to collect outstanding payments from customers, reflecting effective credit management practices.
However, the slight decline in the receivables turnover ratio from 2021 to 2024 may indicate a lengthening of the collection period or a decrease in sales on credit terms. It would be prudent for Carter’s Inc to further evaluate its credit policies and collection procedures to ensure optimal cash flow and liquidity management.
Peer comparison
Dec 31, 2024