Carrier Global Corp (CARR)
Debt-to-equity ratio
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 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 | 11,751,000 | 11,728,000 | 11,029,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,437,000 | 4,366,000 | 2,697,000 |
| Debt-to-equity ratio | 0.00 | 1.02 | 1.04 | 1.03 | 1.08 | 1.16 | 1.19 | 1.12 | 1.34 | 1.32 | 1.35 | 1.40 | 1.53 | 2.16 | 2.69 | 4.09 |
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 eight quarters. The ratio indicates the proportion of the company's total debt relative to its shareholders' equity.
During Q4 2023, the company had a debt-to-equity ratio of 1.65, which signifies that for every dollar of equity, there was $1.65 in debt. This suggests a higher reliance on debt financing compared to equity financing.
The trend shows some variability in the debt-to-equity ratio, with Q3 2023 showing a ratio of 1.07, indicating a lower level of debt relative to equity compared to the previous quarter. However, the ratio increased again in Q2 2023 to 1.10, and then slightly decreased in Q1 2023 to 1.09.
Comparing to the previous year, there has been a general increase in the debt-to-equity ratio. Q4 2022 had a ratio of 1.14, which was lower than the most recent quarter. The ratio increased gradually over the quarters of 2022, peaking at 1.28 in Q2 2022.
The upward trend in the debt-to-equity ratio may suggest that Carrier Global Corp has been taking on more debt relative to equity in financing its operations and growth. This could indicate increased financial risk and a higher reliance on debt to fund its activities. It may be important for stakeholders to monitor this trend and assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023