Carrier Global Corp (CARR)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 10,337,000 | 11,270,000 | 15,647,000 | 14,242,000 | 8,651,000 | 8,655,000 | 8,708,000 | 8,702,000 | 8,670,000 | 8,298,000 | 8,305,000 | 9,513,000 | 9,558,000 | 9,600,000 | 9,577,000 | 10,036,000 |
| Total stockholders’ equity | US$ in thousands | 14,395,000 | 15,042,000 | 14,079,000 | 11,906,000 | 9,005,000 | 8,502,000 | 8,288,000 | 8,468,000 | 8,076,000 | 7,463,000 | 6,992,000 | 7,430,000 | 7,094,000 | 7,222,000 | 7,120,000 | 6,818,000 | 6,578,000 |
| Debt-to-equity ratio | 0.00 | 0.69 | 0.80 | 1.31 | 1.58 | 1.02 | 1.04 | 1.03 | 1.08 | 1.16 | 1.19 | 1.12 | 1.34 | 1.32 | 1.35 | 1.40 | 1.53 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $14,395,000K
= 0.00
Carrier Global Corp's debt-to-equity ratio has displayed a downward trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased consistently from 1.53 on December 31, 2020, to 0.00 on December 31, 2024. This downward trend indicates that the company has been reducing its reliance on debt financing in comparison to equity financing over this period.
However, it is important to note that the ratio experienced fluctuations along the way, with periodic increases and decreases. For example, there was a significant spike in the ratio to 1.58 on December 31, 2023, before decreasing again in the following periods.
The most notable decrease occurred between June 30, 2024, and September 30, 2024, where the ratio dropped sharply from 0.80 to 0.69. The substantial decrease in the debt-to-equity ratio during this period suggests that the company may have paid off debt or increased its equity base significantly.
Overall, the declining trend in Carrier Global Corp's debt-to-equity ratio indicates a positive shift towards a more balanced capital structure with less reliance on debt financing, which could enhance the company's financial stability and reduce its financial risk. However, continued monitoring of the ratio is advisable to assess the company's ongoing capital structure management.
Peer comparison
Dec 31, 2024