Carrier Global Corp (CARR)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.33 | 0.33 | 0.33 | 0.33 | 0.34 | 0.35 | 0.34 | 0.36 | 0.37 | 0.37 | 0.39 | 0.40 | 0.46 | 0.49 | 0.50 |
| Debt-to-capital ratio | 0.00 | 0.50 | 0.51 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.57 | 0.57 | 0.57 | 0.58 | 0.60 | 0.68 | 0.73 | 0.80 |
| Debt-to-equity ratio | 0.00 | 1.02 | 1.04 | 1.03 | 1.08 | 1.16 | 1.19 | 1.12 | 1.34 | 1.32 | 1.35 | 1.40 | 1.53 | 2.16 | 2.69 | 4.09 |
| 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 |
The solvency ratios of Carrier Global Corp indicate its ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown a fluctuating trend, ranging from 0.33 to 0.44 over the past eight quarters. This ratio measures the proportion of the company's assets financed by debt, indicating a moderate level of leverage in relation to its assets.
The debt-to-capital ratio has also varied, ranging from 0.52 to 0.62. This ratio reflects the proportion of the company's capital structure financed by debt, with a higher ratio indicating a greater reliance on debt for funding.
The debt-to-equity ratio has shown a somewhat improving trend, although it still fluctuates, ranging from 1.07 to 1.65. A higher ratio indicates more reliance on debt to finance operations, suggesting that Carrier Global Corp has been increasing its debt levels relative to equity.
The financial leverage ratio, which captures the relationship between total assets and equity, has also fluctuated, ranging from 3.24 to 3.78. This ratio indicates the extent to which the company is using debt to fund its operations, with higher ratios pointing to a higher level of financial leverage.
In summary, while Carrier Global Corp's solvency ratios have shown some variability over the past quarters, the company appears to maintain a moderate level of leverage in its capital structure, with a trend of increasing debt levels relative to equity. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to manage its debt obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to fulfill its interest payment obligations on its debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing the interest coverage ratio data of Carrier Global Corp from Q1 2022 to Q4 2023 shows a relatively stable performance, ranging between 10.20 and 12.85. The company consistently maintained a healthy interest coverage ratio above 10 throughout this period, demonstrating its ability to comfortably cover its interest expenses.
In particular, in Q3 2023 and Q4 2023, Carrier Global Corp exhibited strong interest coverage ratios of 12.85 and 12.70, respectively, which are indicative of its strong financial position and capacity to meet its interest obligations. These high ratios suggest that the company's earnings are sufficiently robust to cover its interest expenses, providing a buffer against potential financial risks.
Overall, based on the trend of the interest coverage ratio data, Carrier Global Corp appears to have a solid financial standing with consistent and strong interest coverage levels, which bodes well for its ability to manage its debt and maintain financial stability.