What is Carters's earnings per share (EPS)?

Carters (CRI) reported diluted earnings per share of $2.53 for fiscal year 2026. This represents a -50.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Carters Financials

CRI

Source SEC Filings (10-K/10-Q) Updated Apr 4, 2026 Currency USD FYE January

This page shows Carters (CRI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI CRI FY2026 2026-05-06

Carter's is earning far less on similar sales, making gross margin and overhead control the decisive business levers.

FY2023’s cash conversion was unusually strong because inventory had been pulled down, lifting operating cash flow to $529.1M; by FY2026, that working-capital tailwind had faded and operating cash flow had fallen to $122.3M. Paired with a gross-margin drop to 45.4% from 48.0% since FY2024, the earnings decline looks like more than soft demand: the business is now producing thinner profit on each sale and less cash support from balance-sheet cleanup.

The profit squeeze is mostly a margin-structure issue, not a demand collapse: FY2026 revenue was only modestly above FY2024, yet gross margin fell to 45.4% from 48.0% while SG&A also moved higher in dollars. When merchandise margin weakens and overhead does not flex down, small top-line moves create much larger swings in operating income.

The balance sheet remains liquid: cash of $487.1M nearly offsets long-term debt of $567.2M, and a 2.5x current ratio suggests near-term obligations are manageable. But the cash-return model has clearly changed—repurchases stopped and dividends were reduced as free cash flow fell to $68.6M, so distributions are no longer being funded by the same surplus cash generation.

Financial Health Signals

Financial Profile 51/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Carters's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Carters has an operating margin of 5.0%, meaning the company retains $5 of operating profit per $100 of revenue. This results in a moderate score of 39/100, indicating healthy but not exceptional operating efficiency. This is down from 9.0% the prior year.

Growth

Carters's revenue grew a modest 1.9% year-over-year to $2.9B. This slow but positive growth earns a score of 32/100.

Leverage

Carters carries a low D/E ratio of 0.61, meaning only $0.61 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 90/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Carters's current ratio of 2.80 indicates adequate short-term liquidity, earning a score of 53/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Carters has a free cash flow margin of 2.4%, earning a moderate score of 42/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Carters's ROE of 9.9% shows moderate profitability relative to equity, earning a score of 49/100. This is down from 21.7% the prior year.

Altman Z-Score Grey Zone

2.74

Carters scores 2.74, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.

Piotroski F-Score Neutral

4/9

Carters passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

1.33x

For every $1 of reported earnings, Carters generates $1.33 in operating cash flow ($122.3M OCF vs $91.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Adequate

4.2x

Carters earns $4.2 in operating income for every $1 of interest expense ($143.9M vs $34.2M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.

Key Financial Metrics

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Earnings & Revenue

Revenue

$2.9B

YoY+1.9%

5Y CAGR-3.8%

10Y CAGR+0.9%

Carters generated $2.9B in revenue in fiscal year 2026. This represents an increase of 1.9% from the prior year.

EBITDA

$195.5M

YoY-36.7%

5Y CAGR-15.9%

10Y CAGR-4.8%

Carters's EBITDA was $195.5M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 36.7% from the prior year.

Net Income

$91.8M

YoY-50.5%

5Y CAGR-19.0%

10Y CAGR-5.4%

Carters reported $91.8M in net income in fiscal year 2026. This represents a decrease of 50.5% from the prior year.

EPS (Diluted)

$2.53

YoY-50.6%

5Y CAGR-15.4%

10Y CAGR-0.8%

Carters earned $2.53 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 50.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$68.6M

YoY-71.7%

5Y CAGR-26.8%

10Y CAGR+9.7%

Carters generated $68.6M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 71.7% from the prior year.

Cash & Debt

$473.4M

YoY+14.7%

5Y CAGR+17.2%

10Y CAGR+5.1%

Carters held $473.4M in cash against $567.5M in long-term debt as of fiscal year 2026.

Dividends Per Share

$1.55

YoY-51.6%

5Y CAGR-5.0%

10Y CAGR+12.4%

Carters paid $1.55 per share in dividends in fiscal year 2026. This represents a decrease of 51.6% from the prior year.

Shares Outstanding

37M

YoY+2.2%

5Y CAGR-3.5%

10Y CAGR-3.8%

Carters had 37M shares outstanding in fiscal year 2026. This represents an increase of 2.2% from the prior year.

Margins & Returns

Gross Margin

45.4%

YoY-2.6pp

5Y CAGR+2.5pp

10Y CAGR+3.8pp

Carters's gross margin was 45.4% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 2.6 percentage points from the prior year.

Operating Margin

5.0%

YoY-4.0pp

5Y CAGR-5.6pp

10Y CAGR-5.0pp

Carters's operating margin was 5.0% in fiscal year 2026, reflecting core business profitability. This is down 4.0 percentage points from the prior year.

Net Margin

3.2%

YoY-3.3pp

5Y CAGR-4.3pp

10Y CAGR-2.9pp

Carters's net profit margin was 3.2% in fiscal year 2026, showing the share of revenue converted to profit. This is down 3.3 percentage points from the prior year.

Return on Equity

9.9%

YoY-11.8pp

5Y CAGR-20.1pp

10Y CAGR-13.0pp

Carters's ROE was 9.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 11.8 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

YoY-100.0%

Carters spent $0 on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.

Capital Expenditures

$53.7M

YoY-4.4%

5Y CAGR-2.6%

10Y CAGR-11.5%

Carters invested $53.7M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 4.4% from the prior year.

CRI Income Statement

Metric	FY26	FY24	FY23	FY22	FY21	FY19
Revenue	$2.9B+1.9%	$2.8B-3.4%	$2.9B-8.3%	$3.2B+6.2%	$3.0B-14.1%	$3.5B
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	$2.0B
Gross Profit	$1.3B-3.7%	$1.4B-2.2%	$1.4B-5.2%	$1.5B+12.1%	$1.3B-12.9%	$1.5B
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$1.2B+8.1%	$1.1B+0.5%	$1.1B-1.4%	$1.1B+0.4%	$1.1B-3.1%	$1.1B
Operating Income	$143.9M-43.5%	$254.7M-21.2%	$323.4M-14.7%	$379.2M+99.7%	$189.9M-48.9%	$371.9M
Interest Expense	$34.2M+9.2%	$31.3M-7.8%	$34.0M-20.6%	$42.8M-23.7%	$56.1M+49.0%	$37.6M
Income Tax	$22.0M-51.4%	$45.3M-35.0%	$69.7M+4.6%	$66.7M+164.0%	$25.3M-60.6%	$64.2M
Net Income	$91.8M-50.5%	$185.5M-20.2%	$232.5M-7.0%	$250.0M+127.9%	$109.7M-58.4%	$263.8M
EPS (Diluted)	$2.53-50.6%	$5.12-17.9%	$6.24-1.6%	$6.34+153.6%	$2.50-57.3%	$5.85

Metric	Q1'27	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25
Revenue	$681.1M-26.4%	$925.5M+22.1%	$757.8M+29.5%	$585.3M-7.1%	$629.8M-26.7%	$859.7M+13.3%	$758.5M+34.4%	$564.4M
Cost of Revenue	N/A	N/A	$416.2M+37.1%	$303.6M	N/A	N/A	$402.4M+43.0%	$281.5M
Gross Profit	$293.9M-26.6%	$400.2M+17.1%	$341.6M+21.2%	$281.8M-3.2%	$291.1M-29.2%	$411.0M+15.5%	$356.0M+25.8%	$282.9M
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$270.0M-15.5%	$319.6M+0.5%	$318.0M+13.2%	$281.0M+3.9%	$270.3M-10.5%	$302.1M+6.1%	$284.7M+15.0%	$247.5M
Operating Income	$28.4M-66.4%	$84.7M+191.1%	$29.1M+619.4%	$4.0M-84.5%	$26.1M-68.6%	$83.2M+8.0%	$77.0M+95.3%	$39.5M
Interest Expense	$11.8M+3.3%	$11.4M+58.6%	$7.2M-8.7%	$7.9M+0.5%	$7.8M-4.4%	$8.2M+10.8%	$7.4M-6.2%	$7.9M
Income Tax	$5.5M-52.9%	$11.7M+261.9%	$3.2M+157.8%	$1.3M-78.4%	$5.8M-59.2%	$14.3M+14.9%	$12.4M+84.5%	$6.7M
Net Income	$14.3M-77.7%	$64.2M+453.9%	$11.6M+2499.3%	$446K-97.1%	$15.5M-74.7%	$61.5M+5.5%	$58.3M+111.0%	$27.6M
EPS (Diluted)	$0.39	N/A	$0.32+3100.0%	$0.01-97.7%	$0.43	N/A	$1.62+113.2%	$0.76

CRI Balance Sheet

Metric	FY26	FY24	FY23	FY22	FY21	FY19
Total Assets	$2.5B+2.1%	$2.4B+2.3%	$2.4B-2.5%	$2.4B-26.3%	$3.3B+20.2%	$2.8B
Current Assets	$1.2B+6.0%	$1.1B+3.8%	$1.1B-7.4%	$1.2B-38.0%	$1.9B+73.1%	$1.1B
Cash & Equivalents	$473.4M+14.7%	$412.9M+17.6%	$351.2M+65.9%	$211.7M-79.9%	$1.1B+391.7%	$214.3M
Inventory	$465.9M-7.3%	$502.3M-6.5%	$537.1M-27.9%	$744.6M+32.8%	$560.7M-5.6%	$594.0M
Accounts Receivable	N/A	N/A	$183.8M	N/A	N/A	N/A
Goodwill	$208.4M+0.7%	$206.9M-1.7%	$210.5M+0.6%	$209.3M-1.4%	$212.3M-7.3%	$229.0M
Total Liabilities	$1.6B-1.5%	$1.6B+3.0%	$1.5B-6.7%	$1.6B-28.0%	$2.3B+21.8%	$1.9B
Current Liabilities	$433.4M-14.8%	$508.8M-0.6%	$511.9M-3.2%	$528.9M-19.5%	$656.9M+38.1%	$475.5M
Long-Term Debt	$567.5M+13.9%	$498.1M+0.2%	$497.4M-19.3%	$616.6M-37.7%	$990.0M+66.5%	$594.7M
Total Equity	$928.5M+8.6%	$854.6M+1.1%	$845.3M+6.1%	$796.4M-22.6%	$1.0B+17.0%	$880.1M
Retained Earnings	$934.6M+4.5%	$894.0M+2.9%	$868.8M+4.6%	$830.4M-20.1%	$1.0B+13.5%	$915.3M

Metric	Q1'27	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25
Total Assets	$2.5B-3.2%	$2.6B+3.9%	$2.5B+0.6%	$2.5B+5.3%	$2.3B-4.2%	$2.4B+2.3%	$2.4B+1.0%	$2.4B
Current Assets	$1.2B-4.7%	$1.3B+12.1%	$1.1B-2.1%	$1.2B+10.4%	$1.0B-8.2%	$1.1B+6.6%	$1.1B-2.8%	$1.1B
Cash & Equivalents	$473.4M-2.8%	$487.1M+164.4%	$184.2M-45.5%	$338.2M+5.4%	$320.8M-22.3%	$412.9M+135.2%	$175.5M-44.6%	$316.6M
Inventory	$465.9M-14.5%	$544.6M-17.0%	$656.1M+6.0%	$619.1M+30.6%	$474.1M-5.6%	$502.3M-17.3%	$607.4M+1.3%	$599.3M
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	$247.0M	N/A
Goodwill	$208.4M-0.3%	$209.0M+0.3%	$208.4M-0.3%	$209.0M+0.9%	$207.1M+0.1%	$206.9M-1.2%	$209.4M+0.1%	$209.1M
Total Liabilities	$1.6B-5.2%	$1.6B+2.2%	$1.6B+0.2%	$1.6B+7.9%	$1.5B-6.0%	$1.6B+1.9%	$1.5B+0.3%	$1.5B
Current Liabilities	$433.4M-14.3%	$506.0M+0.9%	$501.7M-4.6%	$525.7M+28.4%	$409.3M-19.5%	$508.8M+5.1%	$484.1M-8.3%	$527.6M
Long-Term Debt	$567.5M+0.1%	$567.2M+13.7%	$498.7M0.0%	$498.5M0.0%	$498.3M0.0%	$498.1M0.0%	$497.9M0.0%	$497.7M
Total Equity	$928.5M+0.4%	$925.0M+7.0%	$864.6M+1.3%	$853.9M+0.8%	$847.2M-0.9%	$854.6M+3.0%	$829.3M+2.2%	$811.8M
Retained Earnings	$934.6M+0.6%	$929.5M+6.3%	$874.4M+0.3%	$871.9M-1.0%	$880.6M-1.5%	$894.0M+3.8%	$861.3M+2.0%	$844.2M

CRI Cash Flow Statement

Metric	FY26	FY24	FY23	FY22	FY21	FY19
Operating Cash Flow	$122.3M-59.1%	$298.8M-43.5%	$529.1M+498.8%	$88.4M-85.0%	$588.5M+52.0%	$387.2M
Capital Expenditures	$53.7M-4.4%	$56.2M-6.2%	$59.9M+48.3%	$40.4M+22.8%	$32.9M-46.5%	$61.4M
Free Cash Flow	$68.6M-71.7%	$242.6M-48.3%	$469.3M+877.7%	$48.0M-91.4%	$555.6M+70.5%	$325.8M
Investing Cash Flow	-$53.7M+4.4%	-$56.2M+6.2%	-$59.9M-48.3%	-$40.4M-28.3%	-$31.5M+48.1%	-$60.7M
Financing Cash Flow	$2.0M+101.2%	-$174.8M+47.4%	-$332.6M+59.4%	-$819.3M-352.2%	$324.8M+214.6%	-$283.4M
Dividends Paid	$56.4M-51.5%	$116.2M+3.7%	$112.0M-5.2%	$118.1M+349.8%	$26.3M-70.7%	$89.6M
Share Buybacks	$0-100.0%	$50.5M-49.5%	$100.0M-66.6%	$299.7M+562.2%	$45.3M-77.0%	$196.9M

Metric	Q1'27	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25
Operating Cash Flow	$6.4M-97.5%	$258.6M+302.1%	-$128.0M-417.5%	$40.3M+182.9%	-$48.6M-116.9%	$287.5M+457.7%	-$80.4M-168.6%	$117.2M
Capital Expenditures	$7.0M-37.0%	$11.0M-31.5%	$16.1M-0.5%	$16.2M+56.6%	$10.3M-37.4%	$16.5M+7.9%	$15.3M+24.6%	$12.3M
Free Cash Flow	-$543K-100.2%	$247.6M+271.8%	-$144.1M-697.7%	$24.1M+140.9%	-$59.0M-121.8%	$270.9M+383.1%	-$95.7M-191.2%	$104.9M
Investing Cash Flow	-$7.0M+37.0%	-$11.0M+31.5%	-$16.1M+0.5%	-$16.2M-56.6%	-$10.3M+37.4%	-$16.5M-7.9%	-$15.3M-24.6%	-$12.3M
Financing Cash Flow	-$12.2M-122.6%	$54.1M+682.9%	-$9.3M-0.7%	-$9.2M+72.5%	-$33.6M-12.9%	-$29.7M+34.9%	-$45.7M+15.4%	-$54.0M
Dividends Paid	$9.2M+1.2%	$9.1M-0.2%	$9.1M+0.2%	$9.1M-68.6%	$29.0M+0.6%	$28.8M0.0%	$28.8M-1.2%	$29.2M
Share Buybacks	N/A	$0	$0	$0	$0	$0-100.0%	$16.7M-32.4%	$24.8M

CRI Financial Ratios

Metric	FY26	FY24	FY23	FY22	FY21	FY19
Gross Margin	45.4%-2.6pp	48.0%+0.6pp	47.4%+1.6pp	45.8%+2.4pp	43.4%+0.6pp	42.9%
Operating Margin	5.0%-4.0pp	9.0%-2.0pp	11.0%-0.8pp	11.8%+5.5pp	6.3%-4.3pp	10.6%
Net Margin	3.2%-3.3pp	6.5%-1.4pp	7.9%+0.1pp	7.8%+4.1pp	3.6%-3.9pp	7.5%
Return on Equity	9.9%-11.8pp	21.7%-5.8pp	27.5%-3.9pp	31.4%+20.7pp	10.7%-19.3pp	30.0%
Return on Assets	3.7%-3.9pp	7.6%-2.1pp	9.8%-0.5pp	10.3%+6.9pp	3.3%-6.3pp	9.6%
Current Ratio	2.80+0.5	2.25+0.1	2.15-0.1	2.25-0.7	2.92+0.6	2.33
Debt-to-Equity	0.61+0.0	0.580.0	0.59-0.2	0.77-0.2	0.96+0.3	0.68
FCF Margin	2.4%-6.2pp	8.5%-7.4pp	15.9%+14.4pp	1.5%-16.9pp	18.4%+9.1pp	9.3%

Metric	Q1'27	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25
Gross Margin	43.1%-0.1pp	43.2%-1.8pp	45.1%-3.1pp	48.1%+1.9pp	46.2%-1.6pp	47.8%+0.9pp	46.9%-3.2pp	50.1%
Operating Margin	4.2%-5.0pp	9.2%+5.3pp	3.8%+3.1pp	0.7%-3.5pp	4.1%-5.5pp	9.7%-0.5pp	10.2%+3.2pp	7.0%
Net Margin	2.1%-4.8pp	6.9%+5.4pp	1.5%+1.4pp	0.1%-2.4pp	2.5%-4.7pp	7.2%-0.5pp	7.7%+2.8pp	4.9%
Return on Equity	1.5%-5.4pp	6.9%+5.6pp	1.3%+1.3pp	0.1%-1.8pp	1.8%-5.4pp	7.2%+0.2pp	7.0%+3.6pp	3.4%
Return on Assets	0.6%-1.9pp	2.5%+2.0pp	0.5%+0.5pp	0.0%-0.7pp	0.7%-1.9pp	2.5%+0.1pp	2.5%+1.3pp	1.2%
Current Ratio	2.80+0.3	2.51+0.3	2.26+0.1	2.20-0.4	2.56+0.3	2.25+0.0	2.21+0.1	2.09
Debt-to-Equity	0.610.0	0.61+0.0	0.580.0	0.580.0	0.590.0	0.58-0.0	0.60-0.0	0.61
FCF Margin	-0.1%-26.8pp	26.8%+45.8pp	-19.0%-23.1pp	4.1%+13.5pp	-9.4%-40.9pp	31.5%+44.1pp	-12.6%-31.2pp	18.6%

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Frequently Asked Questions

What is Carters's annual revenue?

Carters (CRI) reported $2.9B in total revenue for fiscal year 2026. This represents a 1.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Carters's revenue growing?

Carters (CRI) revenue grew by 1.9% year-over-year, from $2.8B to $2.9B in fiscal year 2026.

Is Carters profitable?

Yes, Carters (CRI) reported a net income of $91.8M in fiscal year 2026, with a net profit margin of 3.2%.

What is Carters's EBITDA?

Carters (CRI) had EBITDA of $195.5M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Carters have?

As of fiscal year 2026, Carters (CRI) had $473.4M in cash and equivalents against $567.5M in long-term debt.

What is Carters's gross margin?

Carters (CRI) had a gross margin of 45.4% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

What is Carters's operating margin?

Carters (CRI) had an operating margin of 5.0% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

What is Carters's net profit margin?

Carters (CRI) had a net profit margin of 3.2% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

Does Carters pay dividends?

Yes, Carters (CRI) paid $1.55 per share in dividends during fiscal year 2026.

What is Carters's return on equity (ROE)?

Carters (CRI) has a return on equity of 9.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Carters's free cash flow?

Carters (CRI) generated $68.6M in free cash flow during fiscal year 2026. This represents a -71.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Carters's operating cash flow?

Carters (CRI) generated $122.3M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are Carters's total assets?

Carters (CRI) had $2.5B in total assets as of fiscal year 2026, including both current and long-term assets.

What are Carters's capital expenditures?

Carters (CRI) invested $53.7M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How many shares does Carters have outstanding?

Carters (CRI) had 37M shares outstanding as of fiscal year 2026.

What is Carters's current ratio?

Carters (CRI) had a current ratio of 2.80 as of fiscal year 2026, which is generally considered healthy.

What is Carters's debt-to-equity ratio?

Carters (CRI) had a debt-to-equity ratio of 0.61 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Carters's return on assets (ROA)?

Carters (CRI) had a return on assets of 3.7% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Carters's Altman Z-Score?

Carters (CRI) has an Altman Z-Score of 2.74, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Carters's Piotroski F-Score?

Carters (CRI) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Carters's earnings high quality?

Carters (CRI) has an earnings quality ratio of 1.33x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Carters cover its interest payments?

Carters (CRI) has an interest coverage ratio of 4.2x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Carters?

Carters (CRI) scores 51 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.