Carrier Global Corp (CARR)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 24,003,000 | 23,595,000 | 23,342,000 | 22,645,000 | 21,752,000 | 21,786,000 | 21,506,000 | 20,725,000 | 21,238,000 | 21,272,000 | 21,162,000 | 21,391,000 | 20,288,000 | 20,074,000 | 19,645,000 | 18,092,000 | 17,250,000 |
| Property, plant and equipment | US$ in thousands | 2,999,000 | 3,015,000 | 3,117,000 | 3,179,000 | 2,160,000 | 2,210,000 | 2,262,000 | 2,277,000 | 2,241,000 | 2,055,000 | 1,805,000 | 1,825,000 | 1,826,000 | 1,764,000 | 1,837,000 | 1,777,000 | 1,810,000 |
| Fixed asset turnover | 8.00 | 7.83 | 7.49 | 7.12 | 10.07 | 9.86 | 9.51 | 9.10 | 9.48 | 10.35 | 11.72 | 11.72 | 11.11 | 11.38 | 10.69 | 10.18 | 9.53 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $24,003,000K ÷ $2,999,000K
= 8.00
The fixed asset turnover ratio for Carrier Global Corp has shown fluctuations over the specified periods. The ratio increased steadily from 9.53 on December 31, 2020, to a peak of 11.72 on March 31, 2022, and remained consistent at this level until June 30, 2022. However, there was a significant decline observed in the following quarters, dropping to 9.48 on December 31, 2022, and further down to 7.12 on March 31, 2024.
This fluctuation indicates varying levels of efficiency in utilizing fixed assets to generate sales during the periods under consideration. A higher fixed asset turnover ratio generally signifies that the company is effectively utilizing its fixed assets to generate revenue. On the other hand, a decreasing ratio might indicate issues with asset management, underutilization of fixed assets, or decreasing sales turnover relative to the asset base.
Overall, the trend in Carrier Global Corp's fixed asset turnover ratio exhibits periods of both efficiency and potential inefficiencies in leveraging fixed assets to generate sales. Further analysis of operational and financial performance alongside industry benchmarks would be necessary to gain a deeper understanding of the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024
See also:
Carrier Global Corp Net Fixed Asset Turnover (Quarterly Data)