Carter’s Inc (CRI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	351,213	211,748	984,294	1,102,320	214,311
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	183,774	198,587	231,354	186,512	251,005
Total current liabilities	US$ in thousands	511,862	528,949	717,231	792,532	475,500
Quick ratio		1.05	0.78	1.69	1.63	0.98

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($351,213K + $—K + $183,774K) ÷ $511,862K
= 1.05

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position and ability to cover immediate liabilities.

Carter’s Inc's quick ratio fluctuated over the past five years, ranging from 0.78 to 1.69. In 2023, the quick ratio improved to 1.05 from 0.78 in 2022, indicating a better ability to meet short-term obligations using liquid assets. However, the quick ratio was lower than the peak reached in 2021 at 1.69.

Although the quick ratio improved in 2023, it is essential to consider the trend over multiple periods to assess the company's liquidity position holistically. Overall, a quick ratio above 1 suggests Carter’s Inc has sufficient liquid assets to cover short-term liabilities, while a downward trend in the ratio may warrant further investigation into the company's liquidity management.