Carter’s Inc (CRI)

Debt-to-equity 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-equity ratio		0.59	0.77	1.04	1.05	0.68

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $497,354K ÷ $845,250K
= 0.59

Carter’s Inc has shown a declining trend in its debt-to-equity ratio over the past five years. The ratio has decreased from 1.05 in 2020 to 0.59 in 2023, indicating a lower reliance on debt in relation to equity in the company's capital structure. This decrease suggests that the company has been managing its debt levels effectively and potentially improving its financial stability. It is important to note that a lower debt-to-equity ratio may indicate a lower financial risk and better ability to withstand economic downturns. However, it is essential to consider other factors such as the industry average and overall financial health of the company in the assessment of its debt management.