Carter’s Inc (CRI)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	185,509	232,500	250,038	339,748	109,717
Total stockholders’ equity	US$ in thousands	854,562	845,250	796,409	950,186	938,033
ROE		21.71%	27.51%	31.40%	35.76%	11.70%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $185,509K ÷ $854,562K
= 21.71%

Over the past five years, Carter’s Inc has shown a fluctuating trend in its Return on Equity (ROE) ratio. In December 2020, the ROE was reported at 11.70%, indicating that for every dollar of equity invested, the company generated a profit of 11.70 cents. Subsequently, there was a significant improvement in ROE, reaching 35.76% by December 2021, signifying a substantial increase in profitability relative to the shareholders' equity.

However, in the following years, although there were some fluctuations, the ROE remained relatively high, hovering around 31.40% in December 2022 and 27.51% in December 2023. This indicated that the company continued to generate significant returns on the equity invested by shareholders.

By December 2024, the ROE had declined to 21.71%, suggesting a decrease in the profitability generated per unit of equity. It is essential for stakeholders to monitor this trend closely to understand the factors impacting the company's efficiency in generating profits relative to its shareholders' equity.

Overall, the varying ROE of Carter’s Inc over the analyzed period reflects the company's ability to manage its assets and liabilities efficiently to generate returns for its shareholders. Further analysis of the company's financial performance and operational strategies would provide valuable insights into the factors driving these fluctuations in ROE.