Carter’s Inc (CRI)
Interest coverage
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 262,140 | 323,778 | 339,654 | 336,753 | 336,215 | 300,373 | 296,956 | 313,356 | 359,517 | 387,694 | 420,646 | 473,419 | 498,584 | 497,139 | 490,232 | 402,516 | 191,046 | 218,397 | 185,369 | 229,362 |
Interest expense (ttm) | US$ in thousands | 31,331 | 30,787 | 32,021 | 32,234 | 33,973 | 35,627 | 36,724 | 37,293 | 42,781 | 47,951 | 53,435 | 60,078 | 60,294 | 61,378 | 62,529 | 62,546 | 56,062 | 49,473 | 43,092 | 36,852 |
Interest coverage | 8.37 | 10.52 | 10.61 | 10.45 | 9.90 | 8.43 | 8.09 | 8.40 | 8.40 | 8.09 | 7.87 | 7.88 | 8.27 | 8.10 | 7.84 | 6.44 | 3.41 | 4.41 | 4.30 | 6.22 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $262,140K ÷ $31,331K
= 8.37
The interest coverage ratio of Carter’s Inc has shown a stable and improving trend over the years, indicating the company's ability to meet its interest payments comfortably. The ratio started at 6.22 as of March 31, 2020, and dipped slightly in the subsequent quarters to a low of 3.41 by December 31, 2020. However, from March 31, 2021 onwards, the interest coverage ratio began to increase steadily, reaching a peak of 10.61 as of June 30, 2024.
This improvement in the interest coverage ratio implies that the company's operating income has been sufficient to cover its interest expenses, reflecting a strong financial position. The consistent upward trend in the interest coverage ratio indicates that Carter’s Inc has been managing its debt obligations effectively and generating enough earnings to comfortably cover its interest payments. Overall, the increasing trend in the interest coverage ratio demonstrates the company's improving financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024