Carrier Global Corp (CARR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,822,000 | 26,544,000 | 26,284,000 | 26,411,000 | 26,086,000 | 25,350,000 | 23,662,000 | 24,193,000 | 26,172,000 | 25,788,000 | 25,738,000 | 24,868,000 | 25,093,000 | 25,728,000 | 24,176,000 | 22,001,000 |
| 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 |
| Financial leverage ratio | 3.64 | 3.12 | 3.17 | 3.12 | 3.23 | 3.40 | 3.38 | 3.26 | 3.69 | 3.57 | 3.61 | 3.65 | 3.81 | 4.73 | 5.54 | 8.16 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,822,000K ÷ $9,005,000K
= 3.64
The financial leverage ratio of Carrier Global Corp has been fluctuating over the past eight quarters, ranging from 3.24 to 3.78. The trend shows that the company's financial leverage has been relatively high, indicating a higher level of debt relative to equity in its capital structure. A financial leverage ratio above 3 suggests that the company relies more on debt financing than equity financing to support its operations and investments.
The increase in the ratio from Q3 2022 to Q4 2023 implies an upward trend in the level of leverage, which could indicate increased risk due to higher debt levels. However, it is essential to note that a higher financial leverage ratio can also potentially enhance returns for shareholders in times of favorable economic conditions.
Overall, Carrier Global Corp's financial leverage ratio suggests a significant reliance on debt financing, and it is crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023