Carrier Global Corp (CARR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 14,395,000 | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Debt-to-capital ratio | 0.00 | 0.61 | 0.52 | 0.57 | 0.60 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $14,395,000K)
= 0.00
The debt-to-capital ratio of Carrier Global Corp has shown a downward trend from 0.60 as of December 31, 2020, to 0.57 as of December 31, 2021, and further decreased to 0.52 as of December 31, 2022. This declining trend indicates that the company has been effectively reducing its reliance on debt to finance its operations relative to its overall capital structure during this period.
However, there was a notable increase in the ratio to 0.61 as of December 31, 2023, which suggests that the company may have taken on more debt in comparison to its capital, impacting its leverage position.
The most recent data point, where the ratio dropped to 0.00 as of December 31, 2024, is unusual and may be due to specific circumstances such as debt reduction or capital restructuring. Further analysis would be required to understand the factors driving this significant change.
Overall, fluctuations in the debt-to-capital ratio can reflect changes in the company's financial health, risk profile, and capital structure over time, providing insights into its financial management strategies and leverage levels.
Peer comparison
Dec 31, 2024