Carrier Global Corp (CARR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,296,000 | 2,122,000 | 3,003,000 | 3,333,000 | 4,515,000 | 4,545,000 | 3,847,000 | 3,811,000 | 2,645,000 | 3,427,000 | 3,680,000 | 3,339,000 | 3,083,000 |
| Interest expense (ttm) | US$ in thousands | 337,000 | 302,000 | 287,000 | 261,000 | 302,000 | 298,000 | 303,000 | 310,000 | 319,000 | 332,000 | 346,000 | 356,000 | 291,000 |
| Interest coverage | 6.81 | 7.03 | 10.46 | 12.77 | 14.95 | 15.25 | 12.70 | 12.29 | 8.29 | 10.32 | 10.64 | 9.38 | 10.59 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,296,000K ÷ $337,000K
= 6.81
Carrier Global Corp's interest coverage ratio has remained consistently strong throughout the past eight quarters, ranging from 10.20 to 12.85. This indicates that the company is generating more than enough operating income to cover its interest expenses. The highest interest coverage ratio of 12.85 was observed in Q3 2023, reflecting the company's ability to comfortably meet its interest obligations. Overall, the stable and high interest coverage ratios suggest that Carrier Global Corp has a healthy financial position and is effectively managing its debt obligations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Carrier Global Corp
CARR
6.81
AAON Inc
AAON
2,774.32
Lennox International Inc
LII
15.26