Carrier Global Corp (CARR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,296,000 | 4,515,000 | 2,645,000 | 3,083,000 |
| Long-term debt | US$ in thousands | — | 8,702,000 | 9,513,000 | 10,036,000 |
| Total stockholders’ equity | US$ in thousands | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Return on total capital | 25.50% | 26.91% | 15.93% | 18.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,296,000K ÷ ($—K + $9,005,000K)
= 25.50%
Carrier Global Corp's return on total capital has fluctuated over the past five years, ranging from 11.67% to 17.47%. The return on total capital was relatively high in 2019 at 17.47%, followed by a slight dip in 2020 to 12.60%. However, the ratio improved in 2021 and 2022, reaching 15.83% and 16.11%, respectively. In the latest year, the return on total capital decreased to 11.67%.
Overall, the trend indicates some volatility in the company's ability to generate returns from its total capital base. It is important for investors and stakeholders to monitor this ratio closely to assess the company's efficiency in utilizing its capital to generate profits.
Peer comparison
Dec 31, 2023