Carrier Global Corp. (NYSE:CARR)

Over the three-year period, total liabilities as a percentage of total liabilities and equity decreased from 73.79% in 2020 to 69.04% in 2022, indicating a slight reduction in the company's reliance on liabilities for funding.

Current liabilities exhibited some fluctuation, increasing from 20.36% in 2020 to a peak of 25.32% in 2021, followed by a decrease to 23.12% in 2022. Within current liabilities, accounts payable rose steadily from 7.72% to 10.86%, suggesting an increasing utilization of trade credit or delayed payments to suppliers. Accrued liabilities remained relatively stable, fluctuating slightly around 9.8% to 10.0%. Contract liabilities decreased from 2.04% to 1.59% in 2021 and slightly increased to 1.72% in 2022, indicating modest changes in revenue recognition or customer advances over the period.

Long-term liabilities decreased significantly from 53.42% in 2020 to 45.92% in 2022, driven mainly by a reduction in long-term debt net of current portion, which declined from 40.00% to 33.36%. This trend reflects a strategic deleveraging or repayment of long-term obligations.

Other components of long-term liabilities showed varied trends: future pension and post-retirement obligations gradually decreased from 2.09% to 1.34%, suggesting lowered pension liabilities or improved funding status. Future income tax obligations showed a more volatile pattern, decreasing from 1.91% in 2020 to 1.35% in 2021, then rising sharply to 2.18% in 2022. Long-term operating lease liabilities slightly decreased overall, stabilizing around 2%, while other long-term liabilities remained relatively stable with a slight increase from 6.87% to 7.02%.

Liabilities held for sale were reported only in 2021 at 4.33%, indicating a possible divestiture or reclassification of certain liabilities during that year.

Total equity increased steadily from 26.21% in 2020 to 30.96% in 2022, reflecting an overall strengthening of the equity base.

Within equity, retained earnings showed a notable increase from 6.55% to 22.49%, indicating strong accumulation of profits or earnings retention rather than distribution to shareholders. This significant growth in retained earnings is a primary driver of the increase in total equity.

Additional paid-in capital remained fairly constant near 21%, while common stock as a percentage remained negligible at around 0.03% to 0.04%.

Treasury stock, which was not reported in 2020, increased as a negative component from -2.02% in 2021 to -7.32% in 2022. This likely reflects increased share repurchase activity, reducing the equity attributable to common shareholders.

Accumulated other comprehensive loss increased in absolute value from -2.97% to -6.47%, indicating a growing unrealized loss in components such as foreign currency translation or other comprehensive income items, which partially offsets equity growth.

Equity attributable to common shareholders increased from 24.92% to 29.74%, aligning with the rise in total equity, while non-controlling interest remained stable around 1.2% to 1.3%.

The company has steadily decreased its leverage over the period from 2020 to 2022, as evidenced by reductions in total liabilities and particularly long-term debt relative to total capital structure. Concurrently, equity has strengthened, mainly due to significant retention of earnings.

The increasing proportion of treasury stock suggests active management of share capital, potentially to enhance shareholder value through buybacks. The growing accumulated other comprehensive loss implies some exposure to market or currency fluctuations affecting equity negatively.

Overall, the trends indicate a shift towards a more equity-funded capital structure, with improved solvency through reduced long-term debt, while maintaining moderate current liabilities and slight variability in deferred tax and pension obligations.