Carrier Global Corp (CARR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,993,000 | 4,242,000 | 2,363,000 | 2,831,000 |
| Revenue | US$ in thousands | 21,458,000 | 21,970,000 | 20,292,000 | 18,281,000 |
| Pretax margin | 9.29% | 19.31% | 11.64% | 15.49% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,993,000K ÷ $21,458,000K
= 9.29%
The pretax margin of Carrier Global Corp has shown fluctuations over the past five years. In 2023, the pretax margin decreased to 9.43% from 21.02% in 2022. This significant decline indicates a substantial decrease in profitability before accounting for taxes, which could be attributed to various factors such as changes in operating expenses or revenue.
Comparing the pretax margin in 2023 to previous years, it is notably lower than the 16.36% in 2020 and the 12.20% in 2019. However, it is higher than the 11.64% in 2021. These fluctuations suggest that Carrier Global Corp has experienced varying levels of profitability over the years, possibly due to changes in business operations, economic conditions, or management strategies.
Overall, the decreasing trend in the pretax margin from 2022 to 2023 raises concerns about the company's ability to generate profits before tax expenses. Further analysis of the underlying factors contributing to this decline would be necessary to understand the implications for Carrier Global Corp's financial performance and future prospects.
Peer comparison
Dec 31, 2023