Carrier Global Corp (CARR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.77% | 83.05% | 87.84% | 83.99% | 83.68% |
| Operating profit margin | 11.56% | 10.07% | 20.55% | 13.03% | 16.86% |
| Pretax margin | 29.12% | 9.29% | 19.31% | 11.64% | 15.49% |
| Net profit margin | 24.48% | 6.29% | 16.09% | 8.20% | 10.84% |
Carrier Global Corp's gross profit margin has shown a slight fluctuation over the years, starting at 83.68% in 2020 and reaching 87.84% in 2022 before dropping to 83.05% in 2023 and significantly decreasing to 9.77% in 2024. This may indicate shifts in the cost structure or pricing strategy of the company.
The operating profit margin of Carrier Global Corp varied more noticeably, decreasing from 16.86% in 2020 to 13.03% in 2021, then increasing to 20.55% in 2022, before declining to 10.07% in 2023 and slightly improving to 11.56% in 2024. This suggests that operational efficiency and cost management have been areas of focus for the company.
The pretax margin of Carrier Global Corp has also displayed variability, starting at 15.49% in 2020, dropping to 11.64% in 2021, then surging to 19.31% in 2022, falling to 9.29% in 2023, and significantly rising to 29.12% in 2024. This could indicate fluctuations in pre-tax income relative to total revenue.
Lastly, the company's net profit margin has experienced fluctuations, decreasing from 10.84% in 2020 to 8.20% in 2021, then increasing to 16.09% in 2022, declining to 6.29% in 2023, and notably rising to 24.48% in 2024. This reflects changes in the profitability of Carrier Global Corp after accounting for all expenses and taxes.
Overall, the analysis of profitability ratios suggests that Carrier Global Corp has experienced variability in its profit margins over the years, indicating the influence of factors such as cost management, pricing strategies, operational efficiency, and fluctuations in pre-tax income on the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.07% | 6.58% | 17.31% | 10.11% | 12.29% |
| Return on assets (ROA) | 14.98% | 4.11% | 13.55% | 6.36% | 7.90% |
| Return on total capital | 18.38% | 9.88% | 26.91% | 15.93% | 18.56% |
| Return on equity (ROE) | 38.93% | 14.98% | 43.76% | 23.46% | 30.13% |
Carrier Global Corp's profitability ratios show fluctuations over the years. The Operating Return on Assets (Operating ROA) decreased from 12.29% in 2020 to 10.11% in 2021, but then increased significantly to 17.31% in 2022, only to drop sharply to 6.58% in 2023 and then slightly recover to 7.07% in 2024.
Similarly, the Return on Assets (ROA) followed a similar pattern, starting at 7.90% in 2020, decreasing to 6.36% in 2021, increasing to 13.55% in 2022, then dropping to 4.11% in 2023, and finally rising to 14.98% in 2024.
The Return on Total Capital also exhibited fluctuations, with a slight decrease from 18.56% in 2020 to 15.93% in 2021, followed by a significant increase to 26.91% in 2022. However, it decreased to 9.88% in 2023 and then slightly recovered to 18.38% in 2024.
The Return on Equity (ROE) showed a similar trend, starting at 30.13% in 2020, decreasing to 23.46% in 2021, then significantly increasing to 43.76% in 2022. Subsequently, it dropped to 14.98% in 2023, and finally, it rose to 38.93% in 2024.
In summary, Carrier Global Corp's profitability ratios have experienced fluctuations over the years, with varying levels of performance in terms of generating returns for both shareholders and overall capital employed. Additional analysis would be needed to understand the reasons behind these fluctuations and to assess the company's overall financial health.