Carrier Global Corp (CARR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 14,242,000 | 8,702,000 | 9,513,000 | 10,036,000 |
| Total assets | US$ in thousands | 37,403,000 | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Debt-to-assets ratio | 0.00 | 0.43 | 0.33 | 0.36 | 0.40 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $37,403,000K
= 0.00
The debt-to-assets ratio is a measure of a company's financial leverage and indicates the proportion of the company's assets that are financed through debt. Looking at the data provided for Carrier Global Corp over the five-year period:
- In December 31, 2020, the debt-to-assets ratio was 0.40, indicating that 40% of the company's assets were financed through debt.
- By December 31, 2021, the ratio improved to 0.36, suggesting a decrease in the reliance on debt to finance assets.
- The trend continued positively in December 31, 2022, with the ratio decreasing further to 0.33, indicating a more conservative capital structure.
- However, in December 31, 2023, the debt-to-assets ratio increased to 0.43, which may suggest a slight increase in debt relative to assets.
- Interestingly, by December 31, 2024, the ratio dropped to 0.00, which could indicate significant changes in the company's capital structure, potentially reflecting a debt-free position or a significant decrease in debt levels relative to assets.
Overall, the decreasing trend in the debt-to-assets ratio from 2020 to 2022 is a positive sign, showing a potential improvement in financial health and reduced financial risk. However, the increase in 2023 and the sudden drop to 0.00 in 2024 require further investigation to understand the dynamics behind the company's debt management and capital structure changes.
Peer comparison
Dec 31, 2024