Carrier Global Corp (CARR)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,458,000 | 21,970,000 | 20,292,000 | 18,281,000 |
| Total current assets | US$ in thousands | 18,780,000 | 9,879,000 | 11,407,000 | 8,524,000 |
| Total current liabilities | US$ in thousands | 6,891,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Working capital turnover | 1.80 | 5.71 | 4.25 | 5.35 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,458,000K ÷ ($18,780,000K – $6,891,000K)
= 1.80
The working capital turnover for Carrier Global Corp has shown fluctuating trends over the past five years. The ratio measures the efficiency at which the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficiently using its current assets to support its sales.
In 2019, the working capital turnover ratio was exceptionally high at 12.18, indicating that Carrier Global Corp was able to generate significant sales revenue relative to its working capital. However, the ratio experienced a substantial drop in 2020 to 5.11, signaling a decrease in the efficiency of working capital utilization.
The ratio then improved in 2021 to 4.31, but remained below the levels seen in 2019. In 2022, there was a significant increase in the working capital turnover to 5.31, indicating a better efficiency in capital usage compared to the previous year.
In 2023, the ratio further increased to 1.86. Although this is lower than the ratios seen in the earlier years, it suggests a slight improvement in the company's ability to generate sales relative to its working capital.
Overall, fluctuations in working capital turnover ratios over the years reflect changes in how efficiently Carrier Global Corp manages its working capital in relation to its sales generation. Further analysis and comparison with industry benchmarks could provide additional insights into the company's financial performance.
Peer comparison
Dec 31, 2023