Carter’s Inc (CRI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	412,926	175,536	316,646	267,575	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.81	0.36	0.60	0.64	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($412,926K + $—K) ÷ $508,816K
= 0.81

The cash ratio of Carter’s Inc has exhibited fluctuations over the reported periods. The cash ratio, which measures the company's ability to cover short-term liabilities with its cash and cash equivalents, increased from 1.77 as of March 31, 2020, to a peak of 1.78 as of June 30, 2021. However, the cash ratio declined steadily thereafter, reaching a low of 0.22 as of September 30, 2022.

The declining trend continued until March 31, 2024, when the cash ratio stood at 0.64. Despite a slight increase in the following quarter, the ratio decreased again to 0.60 as of June 30, 2024. This indicates that Carter’s Inc may have experienced challenges in maintaining higher levels of cash and cash equivalents relative to its short-term liabilities during this period.

Overall, the decreasing trend in the cash ratio suggests that Carter’s Inc may need to closely monitor its liquidity position and take appropriate measures to ensure it has sufficient cash to meet its short-term obligations in the future.