Carter’s Inc (CRI)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	185,509	230,502	238,309	234,537	232,500	206,169	204,999	218,102	250,039	266,833	286,852	321,485	339,748	341,789	338,054	274,607	109,717	135,850	114,861	150,642
Total stockholders’ equity	US$ in thousands	854,562	829,340	811,750	841,353	845,250	785,311	775,009	797,893	796,409	788,202	820,866	915,290	950,186	1,054,870	1,097,500	1,029,610	938,033	821,881	733,278	716,002
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%

December 31, 2024 calculation

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

Return on equity (ROE) is a key financial ratio that measures a company's profitability by evaluating its efficiency in generating profits from shareholders' equity. In the case of Carter’s Inc, the ROE has fluctuated over the past few years.

As of December 31, 2024, Carter’s Inc had an ROE of 21.71%. This indicates that for every dollar of shareholders' equity invested in the company, it generated a return of 21.71 cents in profits.

Analyzing the trend of Carter’s Inc ROE from March 31, 2020, to December 31, 2024, shows various levels of performance. The ROE started at 21.04% in March 2020, reached a peak of 35.76% in December 2021, and then declined to 21.71% in December 2024.

The improvement in ROE from 2020 to 2021 suggests that Carter’s Inc was effectively utilizing shareholders' equity to generate profits. However, the subsequent decline from 2022 to 2024 may indicate challenges in maintaining or further increasing profitability relative to the equity invested in the company.

Overall, while the ROE of Carter’s Inc fluctuated during the period under review, it is essential for stakeholders to monitor this ratio alongside other financial metrics to assess the company's long-term profitability and sustainability.