Carter’s Inc (CRI)

Working capital 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
Revenue (ttm)	US$ in thousands	2,921,271	2,974,223	3,000,099	3,080,086	3,150,547	3,294,716	3,361,194	3,420,196	3,425,819	3,353,810	3,345,468	3,133,951	2,993,623	3,120,152	3,196,123	3,409,921	3,519,290	3,503,790	3,484,678	3,447,489
Total current assets	US$ in thousands	1,101,240	1,067,890	1,045,370	1,042,720	1,188,720	1,346,530	1,341,760	1,698,880	1,899,720	1,982,780	1,971,020	1,917,880	1,946,020	1,797,510	1,889,540	1,590,260	1,107,760	1,223,640	1,041,010	971,027
Total current liabilities	US$ in thousands	511,862	464,197	517,536	410,635	528,949	552,005	633,852	1,024,480	717,231	674,465	628,336	656,859	792,532	760,906	702,374	427,675	475,500	484,168	473,071	361,754
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,921,271K ÷ ($1,101,240K – $511,862K)
= 4.96

Carter’s Inc's working capital turnover has shown fluctuating trends over the past few quarters. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates that the company is able to generate more sales with less investment in working capital.

In the most recent quarter of December 31, 2023, the working capital turnover ratio was 4.96, which suggests that for every dollar invested in working capital, the company generated approximately $4.96 in sales revenue. This indicates a relatively efficient use of working capital to drive sales.

Looking at the trend over the past year, there has been some variability in the working capital turnover ratio, with values ranging from a low of 2.49 in March 2021 to a high of 5.68 in June 2023. This variability may indicate fluctuations in the company's ability to efficiently utilize its working capital to support sales.

Overall, Carter’s Inc's working capital turnover ratio has shown fluctuations, but the recent values indicate a decent level of efficiency in utilizing working capital to generate sales. Monitoring this ratio over time can provide insights into the company's financial health and operational efficiency.