Carrier Global Corp (CARR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,296,000 | 4,515,000 | 2,645,000 | 3,083,000 |
| Total assets | US$ in thousands | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Operating ROA | 7.00% | 17.31% | 10.11% | 12.29% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,296,000K ÷ $32,822,000K
= 7.00%
Carrier Global Corp's operating return on assets (ROA) has fluctuated over the past five years, ranging from a high of 10.25% in 2019 to a low of 7.45% in 2020. The trend shows a decrease in 2020 followed by a slight rebound in subsequent years. In 2023, the operating ROA stands at 7.52%, which is lower compared to the previous two years.
This metric indicates the company's efficiency in generating operating income relative to its total assets. A higher operating ROA suggests better utilization of assets to generate profits. The decline in operating ROA in 2020 and the subsequent moderate levels in recent years highlight potential challenges in optimizing asset efficiency or managing operating expenses.
Further analysis is recommended to understand the factors contributing to the fluctuations in operating ROA and to identify areas for improvement in efficiency and profitability.
Peer comparison
Dec 31, 2023