Carter’s Inc (CRI)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 262,140 323,778 339,654 336,753 336,215 300,373 296,956 313,356 359,517 387,694 420,646 473,419 498,584 497,139 490,232 402,516 191,046 218,397 185,369 229,362
Long-term debt US$ in thousands 498,127 497,930 497,735 497,543 497,354 567,168 496,984 576,803 616,624 736,448 616,275 496,104 991,370 990,900 990,437 989,980 989,530 989,086 1,232,650 1,238,820
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
Return on total capital 19.38% 24.39% 25.94% 25.15% 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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $262,140K ÷ ($498,127K + $854,562K)
= 19.38%

Carter’s Inc has shown fluctuations in its return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 11.73% in March 2020, decreased to 9.43% by June 2020, before increasing to 12.06% in September 2020. However, by December 2020, the return dropped to 9.91%.

Subsequently, there was a significant improvement in the return on total capital, with the percentage reaching 19.93% in March 2021 and further increasing to 33.54% by March 2022. The return then fluctuated between 22.21% and 29.27% from March 2022 to June 2023.

In the latter part of the period, from September 2023 to December 2024, the return on total capital ranged between 19.38% and 25.94%. While the return dropped to 19.38% by December 2024, it remained relatively stable compared to the peak in March 2022.

Overall, the return on total capital for Carter’s Inc has shown variability but generally improved from the initial period to a peak in March 2022 before moderating and stabilizing towards the end of the analyzed period.