Carter’s Inc (CRI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.94% | 46.74% | 48.52% | 44.25% | 42.87% |
| Operating profit margin | 11.11% | 12.04% | 14.51% | 6.40% | 10.57% |
| Pretax margin | 10.38% | 10.05% | 12.79% | 4.55% | 9.32% |
| Net profit margin | 7.98% | 7.94% | 9.92% | 3.70% | 7.50% |
Carter’s Inc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has generally increased from 42.87% in 2019 to 47.94% in 2023, indicating the company's ability to effectively manage its production costs and pricing strategies.
The operating profit margin has fluctuated over the years but has remained at a healthy level, with a notable peak of 14.51% in 2021. This metric suggests that Carter’s Inc has been efficient in controlling its operating expenses and generating profits from its core business operations.
The pretax margin and net profit margin have also shown upward trends, reflecting the company's ability to effectively manage its overall expenses and tax obligations to generate profits. The significant improvement in these margins from 2019 to 2023 indicates a positive financial performance and operational efficiency.
Overall, the profitability ratios of Carter’s Inc demonstrate a positive trend over the years, indicating effective cost management, pricing strategies, and overall financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.60% | 15.54% | 15.59% | 5.60% | 13.51% |
| Return on assets (ROA) | 9.77% | 10.25% | 10.66% | 3.23% | 9.58% |
| Return on total capital | 25.04% | 25.44% | 25.68% | 9.91% | 24.79% |
| Return on equity (ROE) | 27.51% | 31.40% | 35.76% | 11.70% | 29.97% |
Carter’s Inc has demonstrated strong and improving profitability over the past five years as evidenced by its profitability ratios.
1. Operating Return on Assets (Operating ROA): The company's Operating ROA has shown variability over the period, ranging from 5.60% in 2020 to a high of 15.59% in 2021. In 2023, the Operating ROA decreased slightly to 13.60%. This ratio indicates that Carter’s is generating operating income efficiently in relation to its total assets.
2. Return on Assets (ROA): The overall Return on Assets has also improved steadily from 3.23% in 2020 to 10.66% in 2021 before declining slightly to 9.77% in 2023. This shows that Carter’s has been effective in generating profit from its assets over the years.
3. Return on Total Capital: The Return on Total Capital has shown a similar upward trend, reaching 25.68% in 2021 before slightly decreasing to 25.04% in 2023. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on Equity (ROE): Carter’s has consistently delivered strong returns to its shareholders, with ROE ranging from 11.70% in 2020 to a high of 35.76% in 2021. In 2023, the ROE was 27.51%, indicating that the company continues to provide solid returns on shareholders' equity.
Overall, the analysis of the profitability ratios suggests that Carter’s Inc has effectively managed its assets, capital, and equity to generate profits for its stakeholders, with a focus on operational efficiency and value creation.