Carrier Global Corp (CARR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,890,000 | 21,458,000 | 21,970,000 | 20,292,000 | 18,281,000 |
| Property, plant and equipment | US$ in thousands | 2,999,000 | 2,160,000 | 2,241,000 | 1,826,000 | 1,810,000 |
| Fixed asset turnover | 7.63 | 9.93 | 9.80 | 11.11 | 10.10 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,890,000K ÷ $2,999,000K
= 7.63
The fixed asset turnover ratio for Carrier Global Corp has shown some fluctuations over the years. In 2020, the ratio was at 10.10, indicating that the company generated $10.10 in revenue for every dollar invested in fixed assets. This ratio increased to 11.11 in 2021, suggesting improved efficiency in utilizing fixed assets to generate revenue.
However, the ratio declined in 2022 to 9.80 and slightly increased to 9.93 in 2023. This indicates that the company may not be utilizing its fixed assets as effectively in these years compared to the previous period.
In 2024, the fixed asset turnover ratio decreased significantly to 7.63, signaling a potential decline in the efficiency of converting fixed assets into revenue.
Overall, the trend in the fixed asset turnover ratio for Carrier Global Corp has been somewhat volatile, with periods of improvement followed by declines. It is essential for the company to analyze the reasons behind these fluctuations and take appropriate measures to optimize the utilization of its fixed assets for better revenue generation in the future.
Peer comparison
Dec 31, 2024