Carrier Global Corp (CARR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Debt-to-capital ratio | 0.00 | 0.52 | 0.57 | 0.60 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,005,000K)
= 0.00
The debt-to-capital ratio of Carrier Global Corp has fluctuated over the past five years. In 2019, the ratio was at its highest point at 0.76, indicating that a significant portion of the company's capital structure was made up of debt. However, the ratio decreased to 0.62 in 2020, 2023, and 2019, showing a trend of reducing dependency on debt financing.
In 2022, the ratio decreased further to 0.53, indicating a more favorable mix of debt and equity in the company's capital structure. However, in 2021, the ratio increased to 0.59, suggesting a slight increase in the proportion of debt relative to the company's total capital.
Overall, the fluctuation in Carrier Global Corp's debt-to-capital ratio over the past five years indicates that the company has been actively managing its capital structure. The decreasing trend in recent years may signify a deliberate effort to strengthen the balance sheet by reducing reliance on debt financing and achieving a more sustainable capital structure.
Peer comparison
Dec 31, 2023