Carter’s Inc (CRI)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,911,830	3,150,090	3,425,780	2,967,910	3,519,290
Receivables	US$ in thousands	183,774	198,587	231,354	186,512	251,005
Receivables turnover		15.84	15.86	14.81	15.91	14.02

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,911,830K ÷ $183,774K
= 15.84

The receivables turnover ratio for Carter’s Inc has displayed relatively consistent performance over the past five years. The ratio indicates the company's ability to efficiently collect payments from its customers.

The average receivables turnover ratio over the period was approximately 15.28, indicating that on average, Carter’s Inc was able to convert its accounts receivable into cash approximately 15 times during the year.

The slight fluctuations in receivables turnover from year to year suggest that the company has been effectively managing its credit policies and collections processes. The ratios have generally been within a close range, indicating stability in the company's credit management practices.

A higher receivables turnover ratio typically indicates that the company is collecting payments from its customers more quickly, which is generally a positive sign of efficiency in managing accounts receivable. Conversely, a lower ratio may suggest slower collections or potential issues with credit quality.

Overall, the consistent and relatively high receivables turnover ratios for Carter’s Inc suggest that the company has been successful in efficiently managing its accounts receivable and collecting payments from customers in a timely manner.