Carrier Global Corp (CARR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,822,000 | 26,086,000 | 26,172,000 | 25,093,000 |
| Total stockholders’ equity | US$ in thousands | 9,005,000 | 8,076,000 | 7,094,000 | 6,578,000 |
| Financial leverage ratio | 3.64 | 3.23 | 3.69 | 3.81 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,822,000K ÷ $9,005,000K
= 3.64
The financial leverage ratio for Carrier Global Corp has fluctuated over the past five years. In 2019, the company had a relatively high financial leverage ratio of 6.40, indicating a significant reliance on debt to finance its operations. However, since then, the ratio has shown a decreasing trend, reaching a low of 3.36 in 2022. This suggests that the company has been reducing its dependence on debt as a source of funding.
In 2023, the financial leverage ratio increased to 3.78, indicating a slight uptick in leverage compared to the previous year. While the ratio is lower than the levels seen in 2019 and 2020, it is still higher than the 2022 level, suggesting a moderate reliance on debt in the company's capital structure.
Overall, the trend in Carrier Global Corp's financial leverage ratio reflects a strategic shift towards a more balanced capital structure with a reduced dependency on debt financing relative to the earlier years in the analysis period. This trend could indicate a focus on strengthening the company's financial position and reducing potential risks associated with high leverage.
Peer comparison
Dec 31, 2023