Carter’s Inc (CRI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 48.00% | 48.81% | 48.98% | 48.69% | 47.94% | 46.99% | 46.39% | 46.46% | 46.73% | 47.03% | 47.24% | 47.52% | 48.52% | 48.76% | 48.13% | 47.13% | 43.87% | 42.14% | 41.72% | 41.67% |
| Operating profit margin | 8.96% | 10.94% | 11.39% | 11.19% | 11.11% | 10.01% | 9.87% | 10.84% | 12.04% | 12.37% | 13.09% | 13.81% | 14.51% | 14.70% | 14.42% | 12.63% | 6.34% | 7.01% | 5.92% | 6.82% |
| Pretax margin | 8.12% | 10.42% | 10.82% | 10.58% | 10.38% | 8.93% | 8.70% | 8.99% | 10.05% | 10.31% | 10.93% | 12.09% | 12.79% | 12.99% | 12.78% | 10.85% | 4.51% | 5.41% | 4.45% | 5.65% |
| Net profit margin | 6.52% | 8.20% | 8.38% | 8.15% | 7.98% | 6.95% | 6.85% | 7.10% | 7.94% | 8.10% | 8.53% | 9.40% | 9.92% | 10.19% | 10.10% | 8.76% | 3.67% | 4.35% | 3.59% | 4.42% |
Based on the provided data, let's analyze Carter’s Inc profitability ratios:
1. Gross Profit Margin:
Carter’s Inc has maintained a relatively stable gross profit margin over the past few years, fluctuating between 41.67% to 48.98%. The margin peaked at 48.98% in June 30, 2024, indicating the company's ability to generate profits after deducting the cost of goods sold.
2. Operating Profit Margin:
The operating profit margin shows the company's efficiency in controlling operating expenses. Carter’s Inc experienced fluctuations in its operating profit margin, with the highest margin of 14.70% in September 30, 2021, and the lowest margin of 5.92% in June 30, 2020. The consistent maintenance of a double-digit margin suggests sound operational management.
3. Pretax Margin:
The pretax margin measures the company's ability to generate profits before taxes. Carter’s Inc showed variations in its pretax margin, with the highest margin of 12.99% in September 30, 2021, and the lowest margin of 4.45% in June 30, 2020. The company's ability to consistently maintain a pretax margin above 10% indicates effective cost management and revenue generation.
4. Net Profit Margin:
The net profit margin reflects the company's profitability after all expenses have been deducted, including taxes. Carter’s Inc recorded a fluctuating net profit margin, ranging from 3.59% to 10.19%. The highest margin of 10.19% was achieved in September 30, 2021, while the lowest margin of 3.59% was reported in June 30, 2020. Despite the fluctuations, the company managed to maintain a healthy level of profitability over the years.
In conclusion, Carter’s Inc has demonstrated overall stability and efficiency in managing its profitability ratios, with fluctuations in certain periods but maintaining profitability levels that suggest effective cost control and revenue generation strategies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.62% | 9.69% | 10.12% | 10.26% | 9.77% | 8.89% | 8.96% | 9.55% | 10.25% | 10.27% | 11.20% | 10.90% | 10.66% | 10.38% | 10.19% | 8.30% | 3.23% | 4.14% | 3.37% | 4.78% |
| Return on total capital | 19.38% | 24.39% | 25.94% | 25.15% | 25.04% | 22.21% | 23.35% | 22.79% | 25.44% | 25.43% | 29.27% | 33.54% | 25.68% | 24.30% | 23.48% | 19.93% | 9.91% | 12.06% | 9.43% | 11.73% |
| Return on equity (ROE) | 21.71% | 27.79% | 29.36% | 27.88% | 27.51% | 26.25% | 26.45% | 27.33% | 31.40% | 33.85% | 34.95% | 35.12% | 35.76% | 32.40% | 30.80% | 26.67% | 11.70% | 16.53% | 15.66% | 21.04% |
From the data provided, the profitability ratios of Carter’s Inc have shown varying trends over the periods indicated.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased steadily from 7.38% on March 31, 2020, to a peak of 17.18% on June 30, 2022. However, it then dipped to 12.93% on September 30, 2024.
- The company maintained an average Operating ROA of approximately 13%, indicating that it generated profits efficiently from its operating activities over the years.
2. Return on Assets (ROA):
- The ROA also exhibited an upward trajectory, starting at 4.78% on March 31, 2020, and peaking at 10.26% on March 31, 2024.
- Despite some fluctuations, the ROA showed an average of around 8%, illustrating the company's ability to generate profits relative to its total assets.
3. Return on Total Capital:
- The Return on Total Capital showed a significant increase over the periods, reaching its highest point at 33.54% on March 31, 2022. However, it declined to 19.38% by December 31, 2024.
- This ratio reflects the company's effectiveness in utilizing both equity and debt to generate returns for its stakeholders.
4. Return on Equity (ROE):
- The ROE demonstrated a generally upward trend, starting at 21.04% on March 31, 2020, and peaking at 35.76% on December 31, 2021. However, it dropped to 21.71% by December 31, 2024.
- Despite the fluctuations, the company maintained an average ROE of approximately 29%, highlighting its ability to generate returns for its shareholders.
In summary, Carter’s Inc has shown consistent profitability over the years, with fluctuations in some periods but generally maintaining solid returns on assets, total capital, and equity. The company's ability to generate profits efficiently from its operational activities, utilize its capital effectively, and provide returns to its shareholders is evident from the trends in these profitability ratios.