Carter’s Inc (CRI)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 254,727 307,587 323,977 322,086 323,405 296,891 295,044 332,901 379,170 407,594 440,042 472,206 497,079 492,975 482,471 395,843 189,869 218,770 189,113 232,635
Total assets US$ in thousands 2,433,170 2,378,380 2,355,520 2,285,520 2,378,610 2,319,810 2,288,470 2,283,330 2,439,720 2,597,950 2,560,650 2,948,080 3,188,000 3,294,260 3,315,930 3,310,470 3,392,580 3,281,620 3,412,630 3,153,500
Operating ROA 10.47% 12.93% 13.75% 14.09% 13.60% 12.80% 12.89% 14.58% 15.54% 15.69% 17.18% 16.02% 15.59% 14.96% 14.55% 11.96% 5.60% 6.67% 5.54% 7.38%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $254,727K ÷ $2,433,170K
= 10.47%

Operating return on assets (operating ROA) is an essential financial ratio that measures a company's ability to generate profits from its assets used for operations. For Carter’s Inc, the operating ROA has shown fluctuating trends over the reported periods.

From March 31, 2020, to June 30, 2021, the operating ROA exhibited an increasing pattern, starting at 7.38% and reaching 14.55% in June 30, 2021. This upward trend indicates a positive operational efficiency and asset utilization during this period.

Subsequently, from September 30, 2021, to December 31, 2024, the operating ROA experienced some fluctuations. The ratio peaked at 17.18% in June 30, 2022, indicating a strong performance in generating earnings from assets. However, there were declines in the following periods, with the ratio dropping to 10.47% by December 31, 2024.

Overall, the operating ROA for Carter’s Inc reflects variability in the company's ability to generate profits from its operational assets. Investors and stakeholders may need to further analyze the underlying factors contributing to these fluctuations to assess the company's operational efficiency and profitability effectively.