Carter’s Inc (CRI)

Solvency ratios

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
Debt-to-assets ratio 0.20 0.21 0.21 0.22 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
Debt-to-capital ratio 0.37 0.38 0.38 0.37 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
Debt-to-equity ratio 0.58 0.60 0.61 0.59 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
Financial leverage ratio 2.85 2.87 2.90 2.72 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

The solvency ratios of Carter’s Inc show a generally positive trend over the years analyzed. The Debt-to-assets ratio declined steadily from 0.39 in March 2020 to 0.20 in December 2024, indicating an improvement in the company's ability to cover its assets with debt.

Similarly, the Debt-to-capital ratio decreased from 0.63 in March 2020 to 0.37 in December 2024, reflecting a reduction in the proportion of debt used to finance the company's operations relative to its total capital.

The Debt-to-equity ratio followed a downward trajectory from 1.73 in March 2020 to 0.58 in December 2024, highlighting a decrease in the company's reliance on debt to fund its operations compared to equity.

Furthermore, the Financial leverage ratio also exhibited a declining trend, moving from 4.40 in March 2020 to 2.85 in December 2024. This signifies a decrease in the company's financial leverage and indicates a stronger equity position relative to debt.

Overall, the solvency ratios of Carter’s Inc demonstrate an improved financial position and a healthier balance between debt and equity financing over the analyzed period.

Coverage ratios

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
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

Interest coverage ratio is an important financial metric used to evaluate a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses incurred by the company.

Analyzing Carter’s Inc interest coverage ratio based on the provided data, we observe fluctuations over the quarters. The interest coverage ratio ranged from a low of 3.41 at December 31, 2020, to a high of 10.61 at June 30, 2024. Generally, a higher interest coverage ratio indicates a stronger ability of the company to cover its interest expenses with its operating income.

Carter’s Inc interest coverage ratio showed improvement over the quarters, with the ratio consistently above 7 since March 31, 2021. This suggests that the company has been effectively generating enough operating income to cover its interest expenses, indicating financial stability and a reduced risk of default on its debt obligations.

The highest interest coverage ratio of 10.61 at June 30, 2024, indicates a significant improvement in the company's financial health, with a comfortable cushion to meet its interest payments. However, it is essential to monitor this ratio over time to ensure consistent performance and financial sustainability.

Overall, based on the trend and values of the interest coverage ratio for Carter’s Inc, it appears that the company has been managing its interest obligations efficiently, demonstrating a healthy financial position and ability to service its debt obligations.