Carrier Global Corp (CARR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 83.05% | 87.84% | 83.99% | 83.68% |
| Operating profit margin | 10.70% | 20.55% | 13.03% | 16.86% |
| Pretax margin | 9.29% | 19.31% | 11.64% | 15.49% |
| Net profit margin | 6.29% | 16.09% | 8.20% | 10.84% |
Carrier Global Corp's profitability ratios exhibit some fluctuations over the past five years. The gross profit margin has ranged from 26.76% to 29.27%, with a slight increase in 2023 compared to the previous year. The operating profit margin declined from 12.38% in 2019 to 10.71% in 2020 before recovering slightly to 11.17% in 2023.
The pretax margin experienced significant volatility, dropping from 16.36% in 2020 to 9.43% in 2023. This could be indicative of fluctuations in the company's operating efficiency and cost management strategies.
The net profit margin also shows variability, reaching a peak of 17.31% in 2022 but dropping to 6.10% in 2023. This suggests that while the company may have experienced periods of strong profitability, there have also been years with lower net profit margins.
Overall, while Carrier Global Corp has shown some level of profitability over the years, the fluctuations in its profitability ratios indicate potential challenges in maintaining consistent profitability levels. Further analysis of the company's cost structure and revenue streams may be necessary to fully understand the factors driving these fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.00% | 17.31% | 10.11% | 12.29% |
| Return on assets (ROA) | 4.11% | 13.55% | 6.36% | 7.90% |
| Return on total capital | 25.50% | 26.91% | 15.93% | 18.56% |
| Return on equity (ROE) | 14.98% | 43.76% | 23.46% | 30.13% |
Carrier Global Corp's profitability ratios have shown some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 7.52% to 10.25% during the period. The company's ability to generate operating profits from its assets has been relatively stable, with a slight decrease in 2023 compared to the previous years.
2. Return on assets (ROA) has varied significantly, ranging from 4.11% to 13.55%. The sharp increase in 2022 may indicate a more efficient use of assets to generate profits, although there was a notable decline in 2023.
3. Return on total capital has fluctuated between 11.67% and 17.47% over the period. This ratio reflects the overall return generated on both debt and equity capital invested in the company, showing a decrease in 2023 compared to 2022.
4. Return on equity (ROE) has shown substantial variability, ranging from 15.55% to 50.60%. The company's ability to generate profits for its shareholders has fluctuated significantly, with a notable decrease in 2023 compared to the peak in 2022.
Overall, Carrier Global Corp's profitability ratios indicate some degree of inconsistency in performance over the years, with a need for further examination of factors impacting the company's profitability.