Carter’s Inc (CRI)

Liquidity ratios

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
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
Quick ratio 1.05 0.88 0.59 0.93 0.78 0.70 0.66 0.94 1.69 1.79 2.04 1.97 1.63 1.44 1.66 2.29 0.98 0.92 0.61 1.10
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

Carter’s Inc has shown a fluctuating trend in its liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from a low of 1.66 in March 2022 to a high of 3.72 in March 2020. The company's current ratio has generally been above 2, indicating a healthy liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also varied significantly, ranging from 0.59 in June 2023 to 2.29 in March 2020. This ratio has been more volatile compared to the current ratio, suggesting fluctuations in the company's ability to meet its short-term obligations without relying on inventory.

The cash ratio, which indicates the company's ability to pay off its current liabilities with its cash and cash equivalents, has been relatively stable, with values ranging from 0.22 to 1.77. This ratio shows the company's capacity to settle its short-term obligations solely with its readily available cash reserves.

Overall, while Carter’s Inc has generally maintained healthy liquidity ratios over the observed period, investors and analysts may want to pay closer attention to the quick ratio, which gives a more conservative view of the company's liquidity position.

Additional liquidity measure

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 conversion cycle days 145.11 212.88 193.53 204.91 254.42 132.20 121.14 142.91 93.73 161.04 104.52 101.31 59.57 65.80 60.87 93.25 100.52 125.21 102.81 101.71

The cash conversion cycle of Carter’s Inc has exhibited fluctuations over the time periods analyzed. The cycle represents the time it takes for the company to convert its investments in inventory into cash from sales.

In Dec 2023, the cash conversion cycle stood at 145.11 days, indicating an improvement from the previous quarter. However, compared to the prior year, the cycle has increased significantly, suggesting potential inefficiencies in managing inventory, receivables, and payables during the year.

The cycle peaked at 254.42 days in Dec 2022, reflecting a prolonged period for the company to convert its resources into cash. This could be concerning as it may indicate difficulties in efficiently managing working capital, impacting the company's liquidity position.

On the other hand, the lowest cash conversion cycle of 59.57 days was observed in Dec 2020, indicating a more efficient utilization of resources during that time. This period of efficiency could be attributed to effective inventory management, quicker collection of receivables, and optimized payment of payables.

Overall, analyzing the trend in Carter’s Inc's cash conversion cycle provides insight into the company's operational efficiency and working capital management over the specified periods, highlighting areas for improvement and efficiency gains.