Carter’s Inc (CRI)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	497,354	616,624	991,370	989,530	594,672
Total assets	US$ in thousands	2,378,610	2,439,720	3,188,000	3,392,580	2,753,120
Debt-to-assets ratio		0.21	0.25	0.31	0.29	0.22

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $497,354K ÷ $2,378,610K
= 0.21

The debt-to-assets ratio of Carter’s Inc has shown a fluctuating trend over the past five years. The ratio decreased from 0.31 in 2021 to 0.21 in 2023, indicating a reduction in the proportion of debt relative to total assets. This suggests that the company has potentially strengthened its financial position by reducing its reliance on debt financing and improving its ability to cover its obligations with its existing assets.

It is noteworthy that the debt-to-assets ratio peaked in 2021 at 0.31 before declining in the subsequent years, which may signal an intentional effort by the company to manage its debt levels more effectively. Overall, the decreasing trend in the debt-to-assets ratio indicates a positive development in Carter’s Inc's financial leverage and potentially enhanced solvency position over the years.