Carrier Global Corp (CARR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,604,000 | 1,349,000 | 3,534,000 | 1,664,000 | 1,982,000 |
| Total assets | US$ in thousands | 37,403,000 | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| ROA | 14.98% | 4.11% | 13.55% | 6.36% | 7.90% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $5,604,000K ÷ $37,403,000K
= 14.98%
Carrier Global Corp's return on assets (ROA) has shown fluctuations over the past five years. In December 31, 2020, the ROA stood at 7.90%, indicating that the company generated $0.079 in net income for every dollar of assets. The ROA decreased to 6.36% by December 31, 2021, reflecting a decline in profitability or asset utilization.
However, there was a significant improvement in ROA by December 31, 2022, reaching 13.55%. This sharp increase suggests that the company efficiently utilized its assets to generate earnings, possibly through cost management or revenue growth initiatives.
In the following periods, Carrier Global Corp's ROA experienced a decline. By December 31, 2023, the ROA dropped to 4.11%, indicating a decrease in profitability or less effective asset management. Nonetheless, there was a notable rebound by December 31, 2024, with the ROA reaching 14.98%.
Overall, Carrier Global Corp's ROA has shown variability, with periods of improvement and decline. It is essential for stakeholders to closely monitor the company's asset utilization and profitability trends to assess its financial performance and sustainability over time.
Peer comparison
Dec 31, 2024