Carter’s Inc (CRI)

Quick 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
Cash	US$ in thousands	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	214,311	153,936	118,458	160,149
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	183,774	240,507	132,679	223,939	198,587	265,593	183,920	265,694	231,354	261,182	163,957	240,212	186,512	263,231	165,578	221,884	251,005	293,203	168,176	239,239
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
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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Carter’s Inc quick ratio has fluctuated over the past few quarters, ranging from a low of 0.59 to a high of 2.29.

A quick ratio of 1.0 or higher is generally considered healthy, indicating that a company has enough liquid assets to cover its current liabilities. Carter’s Inc quick ratio has mostly stayed above 1.0 in the past few years, with the exception of a few quarters where it dipped below, such as in Jun 2023 (0.59) and Jun 2020 (0.61).

The trend of the quick ratio for Carter’s Inc shows some variability, which may signal changes in the company's liquidity position. It is essential to monitor the quick ratio consistently to assess the company's ability to meet its short-term financial obligations.