Income Statement
Quarterly Data
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.
Carrier Global Corp., consolidated income statement (quarterly data)
US$ in millions
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
An analysis of the quarterly financial performance from March 2020 through March 2023 reveals a general upward trajectory in net sales, punctuated by significant volatility in operating profits and net income due to non-operational items.
- Revenue Trends and Composition
- Net sales grew from 3,888 million in March 2020 to 5,273 million by March 2023. This growth was primarily driven by product sales, which climbed from 3,147 million to 4,686 million over the period. However, a notable structural shift occurred in the service sales segment; after maintaining a range between 697 million and 877 million from 2020 through late 2021, service sales dropped sharply to 484 million in March 2022 and remained consistently lower, averaging approximately 550 million through March 2023.
- Gross Margin and Cost Analysis
- Gross margins exhibited fluctuation, reflecting the volatility of cost of products and services sold. While absolute gross margin increased from 1,122 million in March 2020 to 1,378 million in March 2023, the ratio of gross margin to net sales showed compression in certain periods. The cost of products sold scaled proportionally with sales growth, while the reduction in service sales was accompanied by a corresponding decrease in the cost of services sold, which fell from 598 million in December 2021 to 437 million in March 2023.
- Operating Expense Management
- Research and development expenses showed a steady long-term increase, rising from 98 million in March 2020 to 139 million in March 2023, indicating a consistent investment in innovation. Selling, general, and administrative (SG&A) expenses were more volatile, peaking at 816 million in December 2021 before declining to 601 million in March 2022 and subsequently trending upward again to 721 million by March 2023.
- Profitability and Non-Operating Impacts
- Operating profit and net income attributable to common shareowners displayed extreme volatility. This is largely attributable to the "Other income (expense), net" line item. For instance, a substantial spike in other income of 1,112 million in March 2022 and 753 million in September 2022 directly correlated with peaks in operating profit (1,737 million and 1,526 million, respectively) and net income (1,379 million and 1,312 million, respectively). In quarters without these significant non-operating gains, such as December 2022, net income attributable to common shareowners fell to 270 million, highlighting a reliance on non-core income to drive peak profitability.
- Financial Obligations and Tax Impact
- Net interest expense remained relatively stable throughout the analyzed period, generally fluctuating between 46 million and 93 million. Income tax expenses varied significantly, often aligning with the fluctuations in pre-tax income, with a notable low of 73 million in December 2021 and a high of 301 million in March 2022.
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