Carrier Global Corp (CARR)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,236,000 | 17,821,000 | 19,299,000 | 17,044,000 | 15,298,000 |
| Revenue | US$ in thousands | 22,890,000 | 21,458,000 | 21,970,000 | 20,292,000 | 18,281,000 |
| Gross profit margin | 9.77% | 83.05% | 87.84% | 83.99% | 83.68% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,236,000K ÷ $22,890,000K
= 9.77%
Carrier Global Corp's gross profit margin has demonstrated stability and improvement over the years, starting at 83.68% as of December 31, 2020, and steadily increasing to 87.84% by December 31, 2022. This upward trend reflects the company's ability to effectively manage its production costs and generate higher profits from its core operations.
However, there was a significant decline in the gross profit margin to 83.05% by December 31, 2023, which may indicate challenges in maintaining cost structures or pricing pressures during that period.
The most concerning aspect is the sharp drop in gross profit margin to only 9.77% by December 31, 2024, which raises major red flags regarding the company's operational efficiency and profitability. This drastic decline could be attributed to various factors such as increased production costs, pricing pressures, or a decrease in sales revenues relative to cost of goods sold.
Overall, while Carrier Global Corp has historically maintained a strong gross profit margin, the sudden and severe drop in 2024 necessitates a closer examination of the company's cost management strategies, revenue generation, and overall business performance to address the concerning trend and ensure long-term financial sustainability.
Peer comparison
Dec 31, 2024