Carter’s Inc (CRI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,378,610	2,439,720	3,188,000	3,392,580	2,753,120
Total stockholders’ equity	US$ in thousands	845,250	796,409	950,186	938,033	880,130
Financial leverage ratio		2.81	3.06	3.36	3.62	3.13

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,378,610K ÷ $845,250K
= 2.81

The financial leverage ratio of Carter’s Inc has shown a declining trend from 3.62 in 2020 to 2.81 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a healthier financial position as the company is using less debt relative to equity to fund its activities. This trend may indicate that the company is becoming less risky in terms of its financial structure and may lead to greater financial stability in the future.