Carter’s Inc (CRI)

Carter’s Inc solvency ratios indicate a strong financial position and improved solvency over the years. The Debt-to-assets ratio has decreased steadily from 0.31 in 2021 to 0.20 in 2024, suggesting the company's ability to cover its obligations with its assets. Similarly, the Debt-to-capital ratio has shown a decline from 0.51 in 2021 to 0.37 in 2024, reflecting a decreasing reliance on debt for funding its operations.

Furthermore, the Debt-to-equity ratio has significantly improved from 1.05 in 2020 to 0.58 in 2024, indicating a lower proportion of debt relative to equity in the company's capital structure. This signifies lower financial risk and better leverage for the company. Additionally, the Financial leverage ratio has also decreased from 3.36 in 2021 to 2.85 in 2024, indicating a reduction in the company's leverage and reliance on debt financing.

Overall, the decreasing trend in these solvency ratios demonstrates Carter’s Inc's effective management of debt and capital structure, leading to a stronger financial position and lower financial risk over the years.

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Coverage ratios

Carter’s Inc's interest coverage ratio has shown a positive trend over the past five years, indicating an improvement in its ability to cover interest expenses with its earnings. The ratio increased from 3.41 in December 31, 2020, to 8.27 in December 31, 2021, and further to 8.40 in December 31, 2022. This upward trend suggests the company's earnings are more than sufficient to cover its interest obligations, providing a healthy buffer against potential financial risks. The ratio peaked at 9.90 in December 31, 2023, indicating a particularly strong ability to service its debt. Although there was a slight decrease to 8.37 in December 31, 2024, the overall trend demonstrates Carter’s Inc's solid financial position and improved ability to meet its interest payments effectively.