Carrier Global Corp (CARR)
Debt-to-equity 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-equity ratio | 0.00 | 1.08 | 1.34 | 1.53 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $9,005,000K
= 0.00
The debt-to-equity ratio of Carrier Global Corp has fluctuated over the past five years. In 2019, the ratio was relatively high at 3.14, indicating a significant reliance on debt to finance its operations. However, there has been a declining trend in subsequent years, reaching a low point in 2022 with a ratio of 1.14. This suggests a reduction in debt levels compared to equity, which could indicate improved financial stability and lower financial risk.
In 2023, the debt-to-equity ratio increased to 1.65, signifying a higher proportion of debt relative to equity compared to the previous year. While this ratio is on the higher side, it is important to consider the industry norms and the company's specific circumstances to assess whether this level of leverage is sustainable in the long term.
Overall, the trend of decreasing debt-to-equity ratios from 2019 to 2022 followed by an increase in 2023 indicates some variability in the company's capital structure and financing decisions. Further analysis of Carrier Global Corp's financial performance and debt management strategies would be necessary to fully understand the implications of these changes in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023