Carter’s Inc (CRI)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	497,354	567,168	496,984	576,803	616,624	736,448	616,275	496,104	991,370	990,900	990,437	989,980	989,530	989,086	1,232,650	1,238,820	594,672	769,525	604,377	625,278
Total stockholders’ equity	US$ in thousands	845,250	785,311	775,009	797,893	796,409	788,202	820,866	915,290	950,186	1,054,870	1,097,500	1,029,610	938,033	821,881	733,278	716,002	880,130	812,734	827,897	849,404
Debt-to-equity ratio		0.59	0.72	0.64	0.72	0.77	0.93	0.75	0.54	1.04	0.94	0.90	0.96	1.05	1.20	1.68	1.73	0.68	0.95	0.73	0.74

December 31, 2023 calculation

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

The debt-to-equity ratio of Carter’s Inc has displayed some fluctuations over the past five years, with values ranging from 0.54 to 1.73. A higher debt-to-equity ratio indicates a higher proportion of debt in the capital structure compared to equity.

Between Dec 31, 2019, and Dec 31, 2020, there was an increase in the debt-to-equity ratio from 0.68 to 1.05, suggesting a higher reliance on debt funding. This trend continued into 2021, with the ratio rising further to 1.04 by Dec 31, 2021.

However, a significant drop in the ratio occurred in the first quarter of 2022, falling to 0.54, indicating a reduced level of debt relative to equity. This low ratio was followed by a series of fluctuations in the ratio, reaching a peak of 1.73 by Mar 31, 2020, suggesting a high level of debt compared to equity.

Overall, the debt-to-equity ratio of Carter’s Inc has shown variability over the period under consideration, reflecting changes in the company's capital structure and financial leverage strategies. Further analysis of the trends and underlying reasons for these fluctuations would provide a more comprehensive understanding of the company's financial health and risk profile.