Carter’s Inc (CRI)

Working capital 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
Revenue (ttm) US$ in thousands 2,844,020 2,811,464 2,843,417 2,878,969 2,911,867 2,964,819 2,990,695 3,070,682 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
Total current assets US$ in thousands 1,142,670 1,071,510 1,102,390 1,016,790 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
Total current liabilities US$ in thousands 508,816 484,108 527,643 418,957 511,862 464,197 517,536 410,635 528,949 552,005 633,852 1,024,480 717,231 674,465 628,336 656,859 792,532 760,906 702,374 427,675
Working capital turnover 4.49 4.79 4.95 4.82 4.94 4.91 5.67 4.86 4.78 4.15 4.75 5.07 2.90 2.56 2.49 2.49 2.60 3.01 2.69 2.93

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,844,020K ÷ ($1,142,670K – $508,816K)
= 4.49

The working capital turnover ratio for Carter’s Inc has exhibited some fluctuations over the period under review. The ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher ratio implies better utilization of working capital.

From March 31, 2020, to December 31, 2020, the working capital turnover ratio ranged between 2.60 and 2.93, showing variability in the company's ability to convert its working capital into revenue during this period.

Subsequently, the ratio experienced a significant increase, reaching its peak at 5.07 on March 31, 2022. This spike suggests that Carter’s improved its efficiency in utilizing working capital to generate sales revenue during that quarter.

Following this peak, the ratio gradually decreased but remained relatively stable between 4.49 and 4.95 from June 30, 2024, to December 31, 2024. This stability indicates a consistent level of efficiency in working capital management during the latter part of the period analyzed.

Overall, Carter’s Inc's working capital turnover ratio showed fluctuations but generally improved from the initial period to the peak in March 31, 2022, implying enhanced efficiency in utilizing working capital to support sales activities.