Carrier Global Corp (CARR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,646,000 | 2,160,000 | 4,515,000 | 2,645,000 | 3,083,000 |
| Total assets | US$ in thousands | 37,403,000 | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Operating ROA | 7.07% | 6.58% | 17.31% | 10.11% | 12.29% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,646,000K ÷ $37,403,000K
= 7.07%
The operating return on assets (Operating ROA) for Carrier Global Corp has fluctuated over the years as follows:
1. As of December 31, 2020, the Operating ROA was 12.29%. This indicates that for every dollar of assets the company owns, it generated a return of 12.29% through its operations.
2. By December 31, 2021, the Operating ROA decreased to 10.11%. This decrease may suggest a less efficient use of assets to generate operating profits compared to the previous year.
3. As of December 31, 2022, the Operating ROA significantly improved to 17.31%. This surge in performance could signify improved operational efficiency or increased profitability relative to the size of its asset base.
4. However, by December 31, 2023, the Operating ROA dropped to 6.58%, indicating a decrease in the company's ability to generate operating profits from its assets.
5. Lastly, as of December 31, 2024, the Operating ROA stood at 7.07%. Although slightly higher than the previous year, it remains lower than the levels seen in 2020 and 2022.
Overall, fluctuations in the Operating ROA of Carrier Global Corp suggest varying levels of operational efficiency and profitability in utilizing its assets over the years. An increasing trend in Operating ROA indicates improving profitability relative to its asset base, while a decreasing trend may signify challenges in generating returns from assets. It's essential for the company to analyze the underlying factors contributing to these fluctuations to make informed strategic and operational decisions for sustainable growth.
Peer comparison
Dec 31, 2024