Carrier Global Corp (CARR)

Activity ratios

Short-term

Turnover 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
Inventory turnover	1.64	1.29	1.13	1.01	1.01	1.06	1.24	1.32	1.65	1.68	1.67	1.60	1.83
Receivables turnover	8.77	7.19	6.70	6.84	7.50	7.08	7.50	8.23	8.44	7.52	6.28	6.39	6.20
Payables turnover	1.33	1.14	1.03	0.97	0.94	1.00	1.22	1.24	1.39	1.50	1.34	1.37	1.54
Working capital turnover	1.83	5.23	5.50	4.93	5.52	5.71	5.67	5.25	4.24	3.84	6.24	5.67	5.05

Carrier Global Corp's activity ratios provide insight into the efficiency of the company in managing its inventory, receivables, payables, and working capital.

- Inventory turnover has been relatively consistent, averaging around 6 times per year. This indicates that the company is effectively managing its inventory levels and converting them into sales.

- Receivables turnover has shown some fluctuations but remains within a healthy range, averaging around 7 times per year. This suggests that Carrier Global Corp is efficient in collecting its accounts receivable.

- Payables turnover has been relatively stable, hovering around 5-6 times per year. This indicates that the company is effectively managing its accounts payable by paying suppliers in a timely manner while utilizing available credit terms.

- Working capital turnover has fluctuated more significantly, ranging from 1.86 to 5.59 times per year. A higher working capital turnover indicates that the company is efficiently utilizing its working capital to generate sales revenue.

Overall, based on these activity ratios, Carrier Global Corp appears to be effectively managing its operations by efficiently turning over inventory, receivables, payables, and working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	222.49	283.63	323.42	360.24	360.76	345.30	293.75	276.56	221.52	217.51	218.14	227.62	199.39
Days of sales outstanding (DSO)	days	41.63	50.76	54.51	53.40	48.69	51.53	48.69	44.35	43.23	48.53	58.12	57.11	58.84
Number of days of payables	days	275.18	319.61	354.22	376.05	387.14	365.13	300.38	295.45	262.45	243.71	273.34	267.03	236.97

Carrier Global Corp's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a fluctuating pattern over the past eight quarters, ranging from 51.49 to 66.04 days. A lower DOH indicates quicker turnover of inventory, which may suggest efficient inventory management. However, the DOH has been relatively stable around 60 days in recent quarters, indicating that carrier Global Corp might have a consistent inventory management strategy.

2. Days of Sales Outstanding (DSO): DSO measures how quickly the company collects its accounts receivable. Carrier Global Corp's DSO has also been variable, ranging from 40.98 to 53.73 days. A lower DSO is preferable as it indicates faster cash conversion. The recent increase in DSO from Q4 2022 to Q1 2023 might suggest that the company is taking longer to collect payments from customers.

3. Number of Days of Payables: This ratio reflects how long the company takes to pay its suppliers. Carrier Global Corp's number of days of payables has been relatively stable around 60-70 days over the past eight quarters. A higher number of days of payables suggests that the company is taking longer to settle its payables, which could sometimes be indicative of favorable credit terms with suppliers.

Overall, Carrier Global Corp's activity ratios indicate that while the company's inventory turnover and payment collection have shown some fluctuations, its inventory management and cash collection processes seem relatively stable. The company may want to monitor its collection practices to ensure timely receipt of payments and maintain a balance between inventory turnover and payment schedules.

Long-term

	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
Fixed asset turnover	9.49	9.86	9.51	9.10	9.48	10.35	11.72	11.72	11.11	11.38	10.69	10.18	9.53
Total asset turnover	0.66	0.82	0.82	0.78	0.81	0.84	0.89	0.88	0.78	0.78	0.76	0.73	0.69

The fixed asset turnover ratio for Carrier Global Corp has been consistently high, ranging from 9.11 to 10.00 over the past eight quarters. This indicates that the company efficiently utilizes its fixed assets to generate sales. The relatively stable nature of the fixed asset turnover ratio suggests that Carrier Global Corp has a well-optimized asset base.

On the other hand, the total asset turnover ratio for Carrier Global Corp has fluctuated between 0.67 and 0.85 during the same period. While the ratios are lower compared to the fixed asset turnover, they indicate that the company generates sales from its total assets, albeit at a slower rate. The variations in the total asset turnover ratio may suggest changes in the company's asset composition or sales efficiency over time.

Overall, the combination of high fixed asset turnover and varying total asset turnover ratios for Carrier Global Corp indicates a strong operational efficiency in utilizing fixed assets, while the total asset turnover suggests fluctuations in overall asset utilization for generating sales.