Carrier Global Corp (CARR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,646,000 | 2,296,000 | 4,515,000 | 2,645,000 | 3,083,000 |
| Long-term debt | US$ in thousands | — | 14,242,000 | 8,702,000 | 9,513,000 | 10,036,000 |
| Total stockholders’ equity | US$ in thousands | 14,395,000 | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Return on total capital | 18.38% | 9.88% | 26.91% | 15.93% | 18.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,646,000K ÷ ($—K + $14,395,000K)
= 18.38%
The return on total capital for Carrier Global Corp has exhibited fluctuations over the years. In 2020, the return stood at 18.56%, showing a solid performance. However, by the end of 2021, there was a slight decline to 15.93%. The year 2022 saw a significant improvement in performance, with the return reaching 26.91%, indicating efficient utilization of capital.
Nevertheless, in 2023, there was a notable decrease in the return on total capital to 9.88%, which could be a cause for concern as it represents a significant drop from the previous year. The latest data for 2024 shows a recovery with a return of 18.38%.
In general, while the return on total capital has shown varying levels of performance over the years, it is important for Carrier Global Corp to consistently evaluate and optimize its capital allocation strategies to maintain profitability and sustainable growth.
Peer comparison
Dec 31, 2024