Carrier Global Corp (CARR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 14,395,000 | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| ROE | 38.93% | 14.98% | 43.76% | 23.46% | 30.13% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,604,000K ÷ $14,395,000K
= 38.93%
Carrier Global Corp's return on equity (ROE) has displayed fluctuations over the years based on the provided data. Starting at a relatively high level of 30.13% on December 31, 2020, the ROE decreased to 23.46% by December 31, 2021, indicating a decline in the company's profitability relative to its shareholders' equity.
However, there was a significant improvement in ROE by December 31, 2022, reaching a robust 43.76%, showcasing the company's ability to generate higher returns on the equity invested by shareholders. This surge might be attributable to improved operational efficiency or effective capital utilization.
Subsequently, Carrier Global Corp experienced a notable drop in ROE to 14.98% by December 31, 2023, suggesting a decrease in profitability compared to the equity provided by shareholders. Such a decline could be a result of various factors such as increased expenses, lower revenues, or changes in the capital structure.
By December 31, 2024, the ROE rebounded to 38.93%, indicating a recovery in the company's ability to generate profits relative to shareholders' equity but still below the peak recorded in 2022. Overall, the trend in ROE for Carrier Global Corp shows volatility and fluctuation in its profitability performance over the years, which may require further analysis to understand the underlying reasons and potential implications for the company's financial health.
Peer comparison
Dec 31, 2024