Carter’s Inc (CRI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,378,610 | 2,319,810 | 2,288,470 | 2,283,330 | 2,439,720 | 2,597,950 | 2,560,650 | 2,948,080 | 3,188,000 | 3,294,260 | 3,315,930 | 3,310,470 | 3,392,580 | 3,281,620 | 3,412,630 | 3,153,500 | 2,753,120 | 2,899,580 | 2,747,160 | 2,679,940 |
| 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 |
| Financial leverage ratio | 2.81 | 2.95 | 2.95 | 2.86 | 3.06 | 3.30 | 3.12 | 3.22 | 3.36 | 3.12 | 3.02 | 3.22 | 3.62 | 3.99 | 4.65 | 4.40 | 3.13 | 3.57 | 3.32 | 3.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,378,610K ÷ $845,250K
= 2.81
Carter’s Inc's financial leverage ratio shows a trend of fluctuation over the past few quarters. The ratio has ranged from 2.81 to 4.65, indicating variability in the company's leverage levels. A higher financial leverage ratio suggests a higher level of debt relative to equity, which can magnify returns in a favorable market but also increase financial risk.
The company's financial leverage ratio peaked at 4.65 in the second quarter of 2020, suggesting a significant reliance on debt during that period. Since then, the ratio has gradually decreased but remains above 3. This indicates that Carter’s Inc continues to carry a relatively high level of debt compared to its equity.
It is essential for investors and stakeholders to monitor the company's financial leverage ratio to assess its ability to meet debt obligations and manage financial risks effectively. Fluctuations in the ratio can signal changes in the company's capital structure and financial health, highlighting the need for careful analysis and monitoring of Carter’s Inc's leverage levels.
Peer comparison
Dec 31, 2023