Carrier Global Corp (CARR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| ROE | 14.98% | 43.76% | 23.46% | 30.13% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,349,000K ÷ $9,005,000K
= 14.98%
Carrier Global Corp's return on equity (ROE) has shown fluctuation over the past five years. In 2019, the ROE was high at 50.60%, indicating that the company generated significant returns on shareholders' equity. Subsequently, the ROE decreased in 2020 to 31.70%, but remained at a relatively favorable level.
In 2021, the ROE further decreased to 24.59%, signifying a decline in the company's ability to generate profits from shareholders' equity. However, in 2022, there was a significant improvement in ROE to 45.55%, indicating a strong rebound in profitability relative to the previous year.
The most recent data for 2023 shows an ROE of 15.55%, which represents a notable decline compared to the prior year. This decrease suggests a lower profitability level and inefficiency in generating returns on shareholders' equity.
Overall, the trend in Carrier Global Corp's ROE reflects fluctuations in profitability and efficiency in utilizing shareholder funds over the five-year period. Further analysis and consideration of the company's financial performance and operational aspects would be necessary to understand the drivers behind these variations.
Peer comparison
Dec 31, 2023