Carter’s Inc (CRI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	845,250	796,409	950,186	938,033	880,130
ROE		27.51%	31.40%	35.76%	11.70%	29.97%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $232,500K ÷ $845,250K
= 27.51%

Carter’s Inc has exhibited fluctuations in its return on equity (ROE) over the past five years. The ROE decreased from 29.97% in 2019 to 11.70% in 2020, indicating a significant decline in profitability efficiency. However, the company managed to improve its ROE in the subsequent years, with ROE figures of 35.76% in 2021, 31.40% in 2022, and 27.51% in 2023. This upward trend suggests that Carter’s Inc has been able to enhance its ability to generate profits from shareholders' equity in recent years. Overall, the company's ROE performance reflects a mix of challenges and improvements in its profitability and efficiency levels over the period under review.