Carrier Global Corp (CARR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.26 | 0.28 | 0.38 | 0.43 | 0.33 | 0.33 | 0.33 | 0.33 | 0.34 | 0.35 | 0.34 | 0.36 | 0.37 | 0.37 | 0.39 | 0.40 |
| Debt-to-capital ratio | 0.00 | 0.41 | 0.44 | 0.57 | 0.61 | 0.50 | 0.51 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.57 | 0.57 | 0.57 | 0.58 | 0.60 |
| Debt-to-equity ratio | 0.00 | 0.69 | 0.80 | 1.31 | 1.58 | 1.02 | 1.04 | 1.03 | 1.08 | 1.16 | 1.19 | 1.12 | 1.34 | 1.32 | 1.35 | 1.40 | 1.53 |
| 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 |
The solvency ratios of Carrier Global Corp show a consistent improvement in overall financial strength over the analyzed period.
The Debt-to-assets ratio decreased steadily from 0.40 at the end of 2020 to 0.33 by the end of 2023, signaling a reduction in the proportion of debt relative to total assets, which is a positive trend. However, there was a slight uptick to 0.43 by the end of 2023 before decreasing again.
Similarly, the Debt-to-capital ratio decreased from 0.60 at the end of 2020 to 0.44 by the end of 2024, indicating a lower reliance on debt for financing its operations in relation to its total capital structure.
The Debt-to-equity ratio followed a similar decreasing trend, decreasing from 1.53 at the end of 2020 to 0.69 by the end of 2024. This signifies a decreasing level of financial leverage and a stronger equity position in the company.
The Financial leverage ratio also showed a decreasing trend from 3.81 at the end of 2020 to 2.60 by the end of 2024, indicating that the company is relying less on debt to fund its operations.
Overall, the solvency ratios of Carrier Global Corp demonstrate a positive financial trajectory, with decreasing debt ratios and increasing equity positions, highlighting improved financial stability and lower risk of insolvency over the analyzed period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.33 | 9.16 | 9.69 | 4.76 | 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 |
Carrier Global Corp's interest coverage ratio measures its ability to pay interest expenses on its outstanding debt. The trend analysis of the interest coverage ratio from December 31, 2020, to December 31, 2024, shows fluctuations in the company's ability to cover its interest obligations.
The interest coverage ratio decreased from 10.59 on December 31, 2020, to 6.81 on December 31, 2023, indicating a declining trend in the company's ability to cover its interest expenses. This decrease could signal potential challenges in meeting interest payments with its operating income.
However, there was a slight increase in the interest coverage ratio to 9.33 on December 31, 2024, which could suggest an improvement in the company's ability to cover its interest costs compared to the previous period. It is essential for investors and creditors to monitor the interest coverage ratio closely, as a lower ratio may indicate a higher risk of default on debt obligations.
Overall, the trend in Carrier Global Corp's interest coverage ratio shows fluctuation over the analyzed period, highlighting the importance of ongoing monitoring to assess the company's financial health and debt payment ability.