Carter’s Inc (CRI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 262,140 | 336,215 | 359,517 | 498,584 | 191,046 |
| Long-term debt | US$ in thousands | 498,127 | 497,354 | 616,624 | 991,370 | 989,530 |
| Total stockholders’ equity | US$ in thousands | 854,562 | 845,250 | 796,409 | 950,186 | 938,033 |
| Return on total capital | 19.38% | 25.04% | 25.44% | 25.68% | 9.91% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $262,140K ÷ ($498,127K + $854,562K)
= 19.38%
Carter’s Inc has shown a strong performance in terms of return on total capital over the past five years. The return on total capital has steadily increased from 9.91% as of December 31, 2020, to 25.68% as of December 31, 2021. This upward trend continued in the subsequent years, with the return on total capital remaining around the 25% mark up to December 31, 2023. However, there was a slight decline to 19.38% by December 31, 2024.
Overall, Carter’s Inc has delivered impressive returns on its total capital investment, indicating efficient utilization of capital to generate profits and create value for shareholders. The company's ability to maintain high returns on total capital reflects its strong operational performance and strategic financial management during the period under review.
Peer comparison
Dec 31, 2024