Carter’s Inc (CRI)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 230,809 | 302,242 | 316,736 | 438,290 | 134,984 |
| Revenue | US$ in thousands | 2,843,720 | 2,911,830 | 3,150,090 | 3,425,780 | 2,967,910 |
| Pretax margin | 8.12% | 10.38% | 10.05% | 12.79% | 4.55% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $230,809K ÷ $2,843,720K
= 8.12%
Carter’s Inc's pretax margin has shown variability over the past five years. The pretax margin increased significantly from 4.55% as of December 31, 2020, to 12.79% as of December 31, 2021, indicating improved profitability relative to the company's pre-tax earnings. Subsequently, there was a slight dip in the pretax margin to 10.05% as of December 31, 2022, but it remained relatively stable around 10% in the following years, standing at 10.38% as of December 31, 2023, and 8.12% as of December 31, 2024.
The fluctuations in the pretax margin suggest that Carter’s Inc has experienced varying levels of efficiency in converting its revenues into pre-tax profit over the years. It is essential for the company to further analyze the factors driving these changes to maintain a healthy pretax margin and sustain profitability in the long term.
Peer comparison
Dec 31, 2024