Carrier Global Corp (CARR)
Return on total capital
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | — | 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 | 11,751,000 | 11,728,000 | 11,029,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,437,000 | 4,366,000 | 2,697,000 |
| Return on total capital | 25.50% | 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, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,296,000K ÷ ($—K + $9,005,000K)
= 25.50%
Carrier Global Corp's return on total capital has shown some variability over the past eight quarters, ranging from a low of 11.67% in Q4 2023 to a high of 17.74% in Q2 2022. Overall, the return on total capital has displayed a generally positive trend, with a peak in Q2 2022 followed by some fluctuations in subsequent quarters.
The return on total capital provides insight into how efficiently the company is generating returns from both its debt and equity capital. The downward trend in recent quarters may indicate challenges or changes in the company's operations or capital structure, influencing its ability to generate returns on the capital invested in the business.
It would be advisable to further investigate the reasons behind the fluctuations in the return on total capital to assess the sustainability of the company's performance and identify any potential areas for improvement in capital allocation or operational efficiency.
Peer comparison
Dec 31, 2023