Carrier Global Corp (CARR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,728,000 | 5,561,000 | 5,443,000 | 2,241,000 | 2,296,000 | 2,122,000 | 3,003,000 | 3,333,000 | 4,515,000 | 4,545,000 | 3,847,000 | 3,811,000 | 2,645,000 | 3,427,000 | 3,680,000 | 3,339,000 | 3,083,000 |
| Long-term debt | US$ in thousands | — | 10,337,000 | 11,270,000 | 15,647,000 | 14,242,000 | 8,651,000 | 8,655,000 | 8,708,000 | 8,702,000 | 8,670,000 | 8,298,000 | 8,305,000 | 9,513,000 | 9,558,000 | 9,600,000 | 9,577,000 | 10,036,000 |
| Total stockholders’ equity | US$ in thousands | 14,395,000 | 15,042,000 | 14,079,000 | 11,906,000 | 9,005,000 | 8,502,000 | 8,288,000 | 8,468,000 | 8,076,000 | 7,463,000 | 6,992,000 | 7,430,000 | 7,094,000 | 7,222,000 | 7,120,000 | 6,818,000 | 6,578,000 |
| Return on total capital | 39.79% | 21.91% | 21.47% | 8.13% | 9.88% | 12.37% | 17.72% | 19.40% | 26.91% | 28.17% | 25.16% | 24.22% | 15.93% | 20.42% | 22.01% | 20.37% | 18.56% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,728,000K ÷ ($—K + $14,395,000K)
= 39.79%
Carrier Global Corp's return on total capital has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The trend displays some variation, with the ratio increasing from 18.56% in December 2020 to a peak of 39.79% by December 2024, indicating an improvement in the company's ability to generate profits from its total capital investment.
The returns experienced some oscillations but generally displayed an upward trajectory in the earlier years, peaking at 28.17% in September 2022. However, the ratio experienced a decline in the subsequent quarters, dropping to 9.88% by December 2023. This decline was followed by a notable recovery in the first half of 2024, with return on total capital rebounding to 21.91% by September 2024 before a significant surge to 39.79% by the end of the year.
Overall, the return on total capital for Carrier Global Corp showcases both peaks and troughs, reflecting fluctuations in the company's profitability relative to its invested capital during the specified period. It is essential for stakeholders to monitor these fluctuations and trends to assess the company's financial performance and efficiency in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2024