Carrier Global Corp (CARR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 8,702,000 | 9,513,000 | 10,036,000 |
| Total assets | US$ in thousands | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Debt-to-assets ratio | 0.00 | 0.33 | 0.36 | 0.40 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $32,822,000K
= 0.00
The debt-to-assets ratio of Carrier Global Corp has fluctuated over the past five years, ranging from 0.34 to 0.49. In general, a lower debt-to-assets ratio indicates a lower level of financial risk, as it suggests that the company relies less on debt financing to fund its operations. However, it's important to consider the specific industry and business context when evaluating this ratio.
In this case, the ratio has varied within a relatively narrow range, with the highest ratio recorded in 2019 at 0.49 and the lowest in 2022 at 0.34. The current ratio of 0.44 as of December 31, 2023, indicates that the company's debt level relative to its asset base has increased compared to the previous year but remains below the levels seen in 2019.
Overall, the trend in Carrier Global Corp's debt-to-assets ratio suggests a moderate level of leverage over the years, with periodic fluctuations that may be influenced by various factors such as business strategies, acquisitions, or macroeconomic conditions. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's debt management practices.
Peer comparison
Dec 31, 2023