Carter’s Inc (CRI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.24 | 0.22 | 0.25 | 0.25 | 0.28 | 0.24 | 0.17 | 0.31 | 0.30 | 0.30 | 0.30 | 0.29 | 0.30 | 0.36 | 0.39 | 0.22 | 0.27 | 0.22 | 0.23 |
| Debt-to-capital ratio | 0.37 | 0.42 | 0.39 | 0.42 | 0.44 | 0.48 | 0.43 | 0.35 | 0.51 | 0.48 | 0.47 | 0.49 | 0.51 | 0.55 | 0.63 | 0.63 | 0.40 | 0.49 | 0.42 | 0.42 |
| 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 |
| 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 |
Carter’s Inc's solvency ratios provide insights into the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has ranged from 0.21 to 0.39 over the past five years, indicating that the company has been able to effectively manage its debt in relation to its total assets. The decreasing trend in this ratio reflects a healthier financial position.
The debt-to-capital ratio, which includes both debt and equity in the calculation, has fluctuated between 0.37 and 0.63 during the same period. The decreasing trend in this ratio indicates that the company has been relying less on debt financing and shifting towards a more balanced capital structure.
The debt-to-equity ratio has shown a similar pattern, ranging from 0.59 to 1.73 over the past five years. The decreasing trend in this ratio suggests that Carter’s Inc has been reducing its reliance on debt to finance its operations and investments, which is a positive sign for long-term solvency.
The financial leverage ratio, which measures the company's total assets relative to its equity, has displayed fluctuations between 2.81 and 4.65. The decreasing trend in this ratio signifies that the company has been gradually reducing its leverage, thereby improving its financial stability and ability to withstand economic uncertainties.
Overall, Carter’s Inc's solvency ratios indicate a positive trend towards a more conservative and sustainable capital structure, with a decreasing reliance on debt financing over the past five years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 9.72 | 9.92 | 10.49 | 10.58 |
Carter’s Inc has shown a relatively stable interest coverage ratio over the past five quarters, ranging from 8.09 to 9.90. This indicates that the company has been able to comfortably meet its interest obligations with its earnings.
It is worth noting that there was a significant decrease in the interest coverage ratio in the first quarter of 2021, dropping to 3.41, which could raise concerns about the company's ability to cover its interest payments with its earnings. However, the ratio has since shown improvement, reaching above 8 in the recent quarters.
Overall, the trend in Carter’s Inc interest coverage ratio suggests that the company has been effectively managing its debt obligations, though it is important for investors and stakeholders to continue monitoring this ratio to ensure the company's financial health and stability.