Carter’s Inc (CRI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 412,926 | 351,213 | 211,748 | 984,294 | 1,102,320 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 194,834 | 183,774 | 198,587 | 231,354 | 186,512 |
| Total current liabilities | US$ in thousands | 508,816 | 511,862 | 528,949 | 717,231 | 792,532 |
| Quick ratio | 1.19 | 1.05 | 0.78 | 1.69 | 1.63 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($412,926K
+ $—K
+ $194,834K)
÷ $508,816K
= 1.19
Carter’s Inc's quick ratio has shown variability over the past five years. As of December 31, 2020, the quick ratio was 1.63, indicating the company had $1.63 in liquid assets for every dollar of current liabilities. The ratio improved slightly to 1.69 by December 31, 2021, suggesting a stronger liquidity position. However, by December 31, 2022, the quick ratio decreased to 0.78, which may raise concerns about the company's ability to meet its short-term obligations.
The quick ratio rebounded to 1.05 by December 31, 2023, indicating an improvement in liquidity. By December 31, 2024, the quick ratio further increased to 1.19, demonstrating that the company had enhanced its ability to quickly cover its current liabilities with its liquid assets. Overall, the trend in the quick ratio suggests some fluctuations in Carter’s Inc's liquidity position over the years, with a notable improvement in recent periods. Further analysis and monitoring of liquidity management may be warranted to ensure the company's financial health.
Peer comparison
Dec 31, 2024