Carrier Global Corp (CARR)
Working capital 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 |
| Total current assets | US$ in thousands | 9,891,000 | 19,576,000 | 9,879,000 | 11,407,000 | 8,524,000 |
| Total current liabilities | US$ in thousands | 7,892,000 | 6,981,000 | 6,032,000 | 6,627,000 | 5,110,000 |
| Working capital turnover | 11.45 | 1.70 | 5.71 | 4.25 | 5.35 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,890,000K ÷ ($9,891,000K – $7,892,000K)
= 11.45
Carrier Global Corp's working capital turnover has shown fluctuations over the past five years. In December 2020, the working capital turnover was 5.35, indicating that the company generated $5.35 in revenue for every dollar of working capital invested.
However, there was a noticeable decline in performance by December 2021, with the working capital turnover decreasing to 4.25. This suggests a lower efficiency in utilizing its working capital to generate revenue compared to the previous year.
The following year, in December 2022, the working capital turnover improved significantly to 5.71, showcasing a better ability to generate revenue from the working capital available.
By December 2023, the working capital turnover experienced a sharp drop to 1.70, indicating a significant decline in efficiency in utilizing working capital to generate revenue. This could be a cause for concern as it suggests a potential issue with managing working capital effectively.
In contrast, there was a remarkable recovery in performance by December 2024, with the working capital turnover soaring to 11.45. This substantial increase implies a significant improvement in efficiently utilizing working capital to generate revenue, reflecting a positive trend for the company.
Overall, fluctuations observed in Carrier Global Corp's working capital turnover highlight the importance of closely monitoring and managing working capital efficiency to optimize revenue generation and overall financial performance.
Peer comparison
Dec 31, 2024