Analysis of Reportable Segments
Carrier Global Corp. operates in 3 segments: HVAC; Refrigeration; and Fire & Security.
Segment Profit Margin
Carrier Global Corp., profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 19.47% | 15.26% | 25.98% |
| Refrigeration | 12.44% | 11.53% | 10.71% |
| Fire & Security | 45.66% | 12.00% | 11.72% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | HVAC | HVAC segment profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Refrigeration | Refrigeration segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. | |
| Fire & Security | Fire & Security segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: HVAC
Carrier Global Corp.; HVAC; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 2,610) | 1,738) | 2,462) |
| Net sales | 13,408) | 11,390) | 9,478) |
| Segment Profitability Ratio | |||
| Segment profit margin1 | 19.47% | 15.26% | 25.98% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,610 ÷ 13,408 = 19.47%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | HVAC | HVAC segment profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Segment Profit Margin: Refrigeration
Carrier Global Corp.; Refrigeration; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 483) | 476) | 357) |
| Net sales | 3,883) | 4,127) | 3,333) |
| Segment Profitability Ratio | |||
| Segment profit margin1 | 12.44% | 11.53% | 10.71% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment profit margin = 100 × Operating profit ÷ Net sales
= 100 × 483 ÷ 3,883 = 12.44%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Refrigeration | Refrigeration segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: Fire & Security
Carrier Global Corp.; Fire & Security; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 1,630) | 662) | 584) |
| Net sales | 3,570) | 5,515) | 4,985) |
| Segment Profitability Ratio | |||
| Segment profit margin1 | 45.66% | 12.00% | 11.72% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment profit margin = 100 × Operating profit ÷ Net sales
= 100 × 1,630 ÷ 3,570 = 45.66%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Fire & Security | Fire & Security segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Return on Assets (Segment ROA)
Carrier Global Corp., ROA by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 81.79% | 73.18% | 114.51% |
| Refrigeration | 37.76% | 37.04% | 31.73% |
| Fire & Security | 109.25% | 55.03% | 32.66% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | HVAC | HVAC segment ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Refrigeration | Refrigeration segment ROA improved from 2020 to 2021 and from 2021 to 2022. | |
| Fire & Security | Fire & Security segment ROA improved from 2020 to 2021 and from 2021 to 2022. |
Segment ROA: HVAC
Carrier Global Corp.; HVAC; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 2,610) | 1,738) | 2,462) |
| Segment assets | 3,191) | 2,375) | 2,150) |
| Segment Profitability Ratio | |||
| Segment ROA1 | 81.79% | 73.18% | 114.51% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment ROA = 100 × Operating profit ÷ Segment assets
= 100 × 2,610 ÷ 3,191 = 81.79%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | HVAC | HVAC segment ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Segment ROA: Refrigeration
Carrier Global Corp.; Refrigeration; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 483) | 476) | 357) |
| Segment assets | 1,279) | 1,285) | 1,125) |
| Segment Profitability Ratio | |||
| Segment ROA1 | 37.76% | 37.04% | 31.73% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment ROA = 100 × Operating profit ÷ Segment assets
= 100 × 483 ÷ 1,279 = 37.76%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Refrigeration | Refrigeration segment ROA improved from 2020 to 2021 and from 2021 to 2022. |
Segment ROA: Fire & Security
Carrier Global Corp.; Fire & Security; segment ROA calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Operating profit | 1,630) | 662) | 584) |
| Segment assets | 1,492) | 1,203) | 1,788) |
| Segment Profitability Ratio | |||
| Segment ROA1 | 109.25% | 55.03% | 32.66% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment ROA = 100 × Operating profit ÷ Segment assets
= 100 × 1,630 ÷ 1,492 = 109.25%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Fire & Security | Fire & Security segment ROA improved from 2020 to 2021 and from 2021 to 2022. |
Segment Asset Turnover
Carrier Global Corp., asset turnover by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 4.20 | 4.80 | 4.41 |
| Refrigeration | 3.04 | 3.21 | 2.96 |
| Fire & Security | 2.39 | 4.58 | 2.79 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | HVAC | HVAC segment asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Refrigeration | Refrigeration segment asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. | |
| Fire & Security | Fire & Security segment asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Asset Turnover: HVAC
Carrier Global Corp.; HVAC; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Net sales | 13,408) | 11,390) | 9,478) |
| Segment assets | 3,191) | 2,375) | 2,150) |
| Segment Activity Ratio | |||
| Segment asset turnover1 | 4.20 | 4.80 | 4.41 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment asset turnover = Net sales ÷ Segment assets
= 13,408 ÷ 3,191 = 4.20
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | HVAC | HVAC segment asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Asset Turnover: Refrigeration
Carrier Global Corp.; Refrigeration; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Net sales | 3,883) | 4,127) | 3,333) |
| Segment assets | 1,279) | 1,285) | 1,125) |
| Segment Activity Ratio | |||
| Segment asset turnover1 | 3.04 | 3.21 | 2.96 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment asset turnover = Net sales ÷ Segment assets
= 3,883 ÷ 1,279 = 3.04
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Refrigeration | Refrigeration segment asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment Asset Turnover: Fire & Security
Carrier Global Corp.; Fire & Security; segment asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Net sales | 3,570) | 5,515) | 4,985) |
| Segment assets | 1,492) | 1,203) | 1,788) |
| Segment Activity Ratio | |||
| Segment asset turnover1 | 2.39 | 4.58 | 2.79 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment asset turnover = Net sales ÷ Segment assets
= 3,570 ÷ 1,492 = 2.39
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Fire & Security | Fire & Security segment asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Capital Expenditures to Depreciation
Carrier Global Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 0.91 | 1.21 | 1.15 |
| Refrigeration | 1.03 | 1.08 | 0.67 |
| Fire & Security | 0.69 | 0.59 | 0.47 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | HVAC | HVAC segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Refrigeration | Refrigeration segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. | |
| Fire & Security | Fire & Security segment capital expenditures to depreciation ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Capital Expenditures to Depreciation: HVAC
Carrier Global Corp.; HVAC; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Capital expenditures | 232) | 225) | 188) |
| Depreciation & amortization | 256) | 186) | 163) |
| Segment Financial Ratio | |||
| Segment capital expenditures to depreciation1 | 0.91 | 1.21 | 1.15 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= 232 ÷ 256 = 0.91
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | HVAC | HVAC segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Capital Expenditures to Depreciation: Refrigeration
Carrier Global Corp.; Refrigeration; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Capital expenditures | 32) | 39) | 26) |
| Depreciation & amortization | 31) | 36) | 39) |
| Segment Financial Ratio | |||
| Segment capital expenditures to depreciation1 | 1.03 | 1.08 | 0.67 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= 32 ÷ 31 = 1.03
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Refrigeration | Refrigeration segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Segment Capital Expenditures to Depreciation: Fire & Security
Carrier Global Corp.; Fire & Security; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||
| Capital expenditures | 40) | 49) | 51) |
| Depreciation & amortization | 58) | 83) | 108) |
| Segment Financial Ratio | |||
| Segment capital expenditures to depreciation1 | 0.69 | 0.59 | 0.47 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation & amortization
= 40 ÷ 58 = 0.69
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Fire & Security | Fire & Security segment capital expenditures to depreciation ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net sales
Carrier Global Corp., net sales by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 13,408) | 11,390) | 9,478) |
| Refrigeration | 3,883) | 4,127) | 3,333) |
| Fire & Security | 3,570) | 5,515) | 4,985) |
| Total | 20,861) | 21,032) | 17,796) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Operating profit
Carrier Global Corp., operating profit by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 2,610) | 1,738) | 2,462) |
| Refrigeration | 483) | 476) | 357) |
| Fire & Security | 1,630) | 662) | 584) |
| Total | 4,723) | 2,876) | 3,403) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Segment assets
Carrier Global Corp., segment assets by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 3,191) | 2,375) | 2,150) |
| Refrigeration | 1,279) | 1,285) | 1,125) |
| Fire & Security | 1,492) | 1,203) | 1,788) |
| Total | 5,962) | 4,863) | 5,063) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Capital expenditures
Carrier Global Corp., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 232) | 225) | 188) |
| Refrigeration | 32) | 39) | 26) |
| Fire & Security | 40) | 49) | 51) |
| Total | 304) | 313) | 265) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Depreciation & amortization
Carrier Global Corp., depreciation & amortization by reportable segment
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|
| HVAC | 256) | 186) | 163) |
| Refrigeration | 31) | 36) | 39) |
| Fire & Security | 58) | 83) | 108) |
| Total | 345) | 305) | 310) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).