Carter’s Inc (CRI)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	336,215	300,373	296,956	313,356	359,517	387,694	420,646	473,419	498,584	497,139	490,232	402,516	191,046	218,397	185,369	229,362	365,569	371,505	391,625	383,062
Long-term debt	US$ in thousands	497,354	567,168	496,984	576,803	616,624	736,448	616,275	496,104	991,370	990,900	990,437	989,980	989,530	989,086	1,232,650	1,238,820	594,672	769,525	604,377	625,278
Total stockholders’ equity	US$ in thousands	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	880,130	812,734	827,897	849,404
Return on total capital		25.04%	22.21%	23.35%	22.79%	25.44%	25.43%	29.27%	33.54%	25.68%	24.30%	23.48%	19.93%	9.91%	12.06%	9.43%	11.73%	24.79%	23.48%	27.34%	25.98%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $336,215K ÷ ($497,354K + $845,250K)
= 25.04%

Over the past years, Carter’s Inc has demonstrated a consistent performance in generating returns on total capital, with an average return of approximately 23.46%. The company's return on total capital has ranged from a low of 9.43% in June 2020 to a high of 33.54% in March 2022, indicating fluctuations in the company's capital efficiency over time.

The return on total capital peaked in the first quarter of 2022, possibly due to improved operational efficiency or effective capital allocation strategies. However, it experienced a significant drop in the fourth quarter of 2020, which might reflect challenges or investments impacting profitability during that period.

Overall, Carter’s Inc has maintained a relatively strong performance in terms of utilizing its capital to generate returns, with the most recent figure of 25.04% indicating the company's ability to efficiently generate profits relative to the total capital employed. Monitoring this ratio over time can provide insights into the company's financial health, effectiveness in utilizing resources, and potential for long-term value creation.