Carter’s Inc (CRI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	845,250	796,409	950,186	938,033	880,130
Debt-to-capital ratio		0.37	0.44	0.51	0.51	0.40

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $497,354K ÷ ($497,354K + $845,250K)
= 0.37

The debt-to-capital ratio of Carter’s Inc has shown a decreasing trend over the past five years. In 2023, the ratio stood at 0.37, indicating a lower reliance on debt to finance its operations compared to previous years. This suggests that the company has been able to reduce its debt levels relative to its total capital, which includes both debt and equity.

A decreasing debt-to-capital ratio is generally viewed positively by investors and creditors as it signifies improved financial health and lower financial risk for the company. It also indicates that Carter's Inc may be managing its debt more effectively and potentially improving its overall financial performance.

Overall, the declining trend in the debt-to-capital ratio for Carter’s Inc over the past five years suggests a more conservative approach to debt management and a stronger capital structure, which could be beneficial for the company's long-term sustainability and growth prospects.