Carter’s Inc (CRI)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 498,127 | 497,354 | 616,624 | 991,370 | 989,530 |
| Total stockholders’ equity | US$ in thousands | 854,562 | 845,250 | 796,409 | 950,186 | 938,033 |
| Debt-to-equity ratio | 0.58 | 0.59 | 0.77 | 1.04 | 1.05 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $498,127K ÷ $854,562K
= 0.58
The debt-to-equity ratio for Carter’s Inc has shown a decreasing trend over the past five years, from 1.05 in December 2020 to 0.58 in December 2024. This signifies that the company has been reducing its reliance on debt and improving its financial leverage by increasing equity financing. A declining debt-to-equity ratio is generally viewed positively by investors and creditors as it indicates a lower risk of default and a healthier balance sheet structure. The consistent decrease in the ratio suggests that Carter’s Inc has been effectively managing its debt levels and strengthening its financial position over the years. This trend is notable as it demonstrates the company's prudent financial management and commitment to maintaining a sustainable capital structure.
Peer comparison
Dec 31, 2024