Carrier Global Corp (CARR)
Working capital turnover
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | |||
| Total current assets | US$ in thousands | 18,780,000 | 10,511,000 | 10,141,000 | 10,158,000 | 9,879,000 | 9,740,000 | 9,276,000 | 9,602,000 | 11,407,000 | 11,300,000 | 8,754,000 | 8,328,000 | 8,524,000 | 9,334,000 | 8,053,000 | 5,968,000 |
| Total current liabilities | US$ in thousands | 6,891,000 | 6,349,000 | 6,234,000 | 5,958,000 | 6,032,000 | 6,013,000 | 5,546,000 | 5,531,000 | 6,627,000 | 6,068,000 | 5,604,000 | 5,138,000 | 5,110,000 | 5,182,000 | 4,789,000 | 4,451,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,752,000K ÷ ($18,780,000K – $6,891,000K)
= 1.83
Carrier Global Corp's working capital turnover has shown fluctuations over the past eight quarters, ranging from a low of 1.86 in Q4 2023 to a high of 5.59 in Q2 2023. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations.
In the most recent quarter, Q4 2023, the working capital turnover decreased significantly to 1.86, which may suggest a decrease in the efficiency of working capital management compared to previous quarters. This could be due to changes in the company's operating cycle, inventory management, or accounts receivable/payable policies.
On the other hand, in Q2 2023, the working capital turnover ratio reached its peak at 5.59, reflecting a period of exceptionally efficient working capital management. This could indicate improved inventory turnover, tighter control over accounts receivable, or more effective management of accounts payable during that quarter.
Overall, fluctuations in Carrier Global Corp's working capital turnover ratio indicate varying levels of efficiency in utilizing working capital to support sales over the observed quarters. Further analysis into the underlying factors driving these fluctuations would be necessary to fully understand the company's working capital management practices and performance.
Peer comparison
Dec 31, 2023
See also:
Carrier Global Corp Working Capital Turnover (Quarterly Data)