Carrier Global Corp (CARR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,349,000 | 3,534,000 | 1,664,000 | 1,982,000 |
| Total assets | US$ in thousands | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| ROA | 4.11% | 13.55% | 6.36% | 7.90% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,349,000K ÷ $32,822,000K
= 4.11%
Carrier Global Corp's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA decreased to 4.11% from 13.55% in 2022, marking a significant decline. This reduction may indicate decreased efficiency in generating profits from its assets compared to the prior year.
However, in 2021, the ROA was 6.36%, showing a moderate improvement from 2020's ROA of 7.90%. The company was more effective in utilizing its assets to generate earnings in 2021.
Comparing the ROA in 2023 to the levels seen in 2019 (7.91%), there is a notable decrease in efficiency over the five-year period. This suggests that Carrier Global Corp may need to reassess its asset management strategies to enhance profitability and overall performance.
In conclusion, the downward trend in Carrier Global Corp's ROA implies potential challenges in optimizing asset utilization, and the company may benefit from strategic adjustments to improve its financial performance in the future.
Peer comparison
Dec 31, 2023