Carrier Global Corp (CARR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 37,403,000 | 40,201,000 | 40,424,000 | 40,810,000 | 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 |
| 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 |
| Financial leverage ratio | 2.60 | 2.67 | 2.87 | 3.43 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,403,000K ÷ $14,395,000K
= 2.60
Based on the provided data, we observe fluctuations in Carrier Global Corp's financial leverage ratio over the reporting periods. The financial leverage ratio, which measures the company's use of debt to finance its operations and assets, shows a decreasing trend from December 31, 2020, to December 31, 2024.
The ratios ranged from a high of 3.81 on December 31, 2020, to a low of 2.60 on December 31, 2024. This reduction indicates a potential decrease in the company's reliance on debt financing over the period under review. Lower financial leverage ratios suggest that the company is less reliant on debt to fund its operations, which can be viewed positively in terms of financial risk.
It is important to note that a decreasing financial leverage ratio may imply improved financial stability and decreased risk of financial distress. However, further analysis and consideration of other financial metrics are necessary to fully assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2024