Name: Carrier Global Corp. (NYSE:CARR) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Carrier Global Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Product sales	18,250)	17,214)	14,347)
Service sales	2,171)	3,399)	3,109)
Net sales	20,421)	20,613)	17,456)
Cost of products sold	(13,337)	(12,300)	(10,185)
Cost of services sold	(1,620)	(2,333)	(2,162)
Cost of products and services sold	(14,957)	(14,633)	(12,347)
Gross margin	5,464)	5,980)	5,109)
Research and development	(539)	(503)	(419)
Selling, general and administrative	(2,512)	(3,120)	(2,820)
Equity method investment net earnings	262)	249)	207)
Transaction gains	—)	—)	1,123)
Impairment charge on minority-owned joint venture investments	—)	(2)	(72)
Other	1,840)	41)	(45)
Other income (expense), net	1,840)	39)	1,006)
Operating profit	4,515)	2,645)	3,083)
Non-service pension benefit (expense)	(4)	61)	60)
Interest expense	(302)	(319)	(298)
Interest income	83)	13)	10)
Interest income (expense), net	(219)	(306)	(288)
Income from operations before income taxes	4,292)	2,400)	2,855)
Income tax expense	(708)	(699)	(849)
Net income from operations	3,584)	1,701)	2,006)
Non-controlling interest in subsidiaries’ earnings from operations	(50)	(37)	(24)
Net income attributable to common shareowners	3,534)	1,664)	1,982)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Revenue analysis indicates a divergent trend between product and service streams. Product sales exhibited consistent growth, rising from 14,347 million US$ in 2020 to 18,250 million US$ in 2022. In contrast, service sales peaked in 2021 at 3,399 million US$ before declining to 2,171 million US$ by the end of 2022. Consequently, net sales grew significantly between 2020 and 2021 before stabilizing in 2022.

Gross Profitability and Cost Structure: Gross margins reached a peak of 5,980 million US$ in 2021 but declined to 5,464 million US$ in 2022. This contraction occurred despite the continued growth in product sales, suggesting that the cost of products and services sold increased at a rate that outpaced revenue growth in the final year of the period.
Operating Expense Management: Research and development expenditures showed a steady upward trajectory, increasing from 419 million US$ in 2020 to 539 million US$ in 2022. Selling, general, and administrative expenses peaked at 3,120 million US$ in 2021 but were reduced to 2,512 million US$ in 2022, indicating an improvement in operational cost efficiency.
Operating Profit and Non-Operating Influence: Operating profit experienced significant volatility, declining in 2021 to 2,645 million US$ before surging to 4,515 million US$ in 2022. This sharp increase was heavily influenced by a substantial rise in other income, which reached 1,840 million US$ in 2022, compared to 39 million US$ in 2021.
Net Income and Bottom-Line Performance: Net income attributable to common shareowners grew substantially in 2022 to 3,534 million US$, more than doubling the 2021 result of 1,664 million US$. This growth was driven by the recovery in operating profit and a reduction in net interest expenses, which improved from -306 million US$ in 2021 to -219 million US$ in 2022.

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