Carter’s Inc (CRI)

Current 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
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
Current ratio		2.15	2.30	2.02	2.54	2.25	2.44	2.12	1.66	2.65	2.94	3.14	2.92	2.46	2.36	2.69	3.72	2.33	2.53	2.20	2.68

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,101,240K ÷ $511,862K
= 2.15

The current ratio of Carter’s Inc has exhibited fluctuations over the past several quarters. The ratio indicates the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 suggests that the company has more current assets than current liabilities.

Looking at the trend, the current ratio ranged from a low of 1.66 in March 2022 to a high of 3.72 in March 2020. This shows variability in the company's liquidity position over time. Specifically, the current ratio significantly increased from March 2022 to June 2022, reaching 3.14, before decreasing to 2.02 in June 2023, indicating a decline in short-term liquidity.

It is important to note that a higher current ratio is generally preferred as it indicates a stronger ability to cover short-term obligations. However, excessively high ratios may suggest inefficiency in asset utilization. Conversely, a lower current ratio may signal potential liquidity issues. Therefore, it is essential to assess the current ratio in conjunction with other financial metrics for a more comprehensive understanding of Carter’s Inc's financial health.