Carter’s Inc (CRI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	351,213	169,106	174,503	157,685	211,748	121,649	231,339	702,266	984,294	943,025	1,120,900	1,053,690	1,102,320	831,175	1,000,580	759,100	214,311	153,936	118,458	160,149
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.69	0.36	0.34	0.38	0.40	0.22	0.36	0.69	1.37	1.40	1.78	1.60	1.39	1.09	1.42	1.77	0.45	0.32	0.25	0.44

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($351,213K + $—K) ÷ $511,862K
= 0.69

The cash ratio of Carter’s Inc has exhibited fluctuations over the analyzed periods. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In the most recent period, as of December 31, 2023, Carter’s Inc had a cash ratio of 0.69, which was an improvement from the previous quarter but lower compared to the ratio recorded in the same period the previous year. This implies that the company may have slightly improved its liquidity position compared to the preceding quarter.

Looking at the trend over the past few years, the cash ratio fluctuated significantly, reaching a peak of 1.78 in June 2021 and hitting a low of 0.22 in September 2022. This indicates that the company's cash position has varied significantly during this period.

Overall, a lower cash ratio may suggest that Carter’s Inc has less cash on hand relative to its short-term obligations, which could potentially indicate liquidity challenges. Conversely, a higher cash ratio may indicate a stronger liquidity position. It is essential for investors and stakeholders to monitor changes in the cash ratio to assess the company's short-term liquidity health and ability to meet its financial obligations.