Carter’s Inc (CRI)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	232,500	250,038	339,748	109,717	263,802
Total assets	US$ in thousands	2,378,610	2,439,720	3,188,000	3,392,580	2,753,120
ROA		9.77%	10.25%	10.66%	3.23%	9.58%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $232,500K ÷ $2,378,610K
= 9.77%

Carter’s Inc has shown fluctuating trends in its return on assets (ROA) over the past five years. The ROA decreased significantly in 2020 to 3.23%, indicating a temporary decline in the company's profitability and efficiency in generating profits from its assets. However, the ROA rebounded in the following years, reaching 9.77% in 2023, demonstrating an improvement in the company's ability to utilize its assets effectively to generate earnings.

Overall, Carter’s Inc has maintained a generally healthy ROA, with figures ranging from 9.58% to 10.66% in the last four years. This indicates that the company has been successful in generating profits relative to its asset base, highlighting strong operational efficiency and financial performance. The recent dip in ROA in 2023 may warrant further investigation to understand the factors contributing to this decline and whether it is a temporary setback or a cause for concern in the company's financial performance.