Carrier Global Corp (CARR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 37,403,000 | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Total stockholders’ equity | US$ in thousands | 14,395,000 | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Financial leverage ratio | 2.60 | 3.64 | 3.23 | 3.69 | 3.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,403,000K ÷ $14,395,000K
= 2.60
The financial leverage ratio of Carrier Global Corp has shown a declining trend from 3.81 in December 2020 to 2.60 in December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests a stronger financial position and less financial risk as the company is using less debt relative to its equity. However, it is important to note that the financial leverage ratio of 2.60 in December 2024 may also indicate a lower level of leveraging compared to industry peers, which could potentially limit the company's growth opportunities if not managed efficiently. Overall, the decreasing trend in the financial leverage ratio reflects a prudent approach by Carrier Global Corp towards managing its capital structure and financial risk.
Peer comparison
Dec 31, 2024