Name: Carrier Global Corp. (NYSE:CARR) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Carrier Global Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Accounts payable	2,833)	2,334)	1,936)
Accrued liabilities	2,610)	2,561)	2,471)
Contract liabilities, current	449)	415)	512)
Liabilities held for sale	—)	1,134)	—)
Current portion of long-term debt	140)	183)	191)
Current liabilities	6,032)	6,627)	5,110)
Long-term debt, net of current portion	8,702)	9,513)	10,036)
Future pension and post-retirement obligations	349)	380)	524)
Future income tax obligations	568)	354)	479)
Long-term operating lease liabilities	529)	527)	642)
Other long-term liabilities	1,830)	1,677)	1,724)
Long-term liabilities	11,978)	12,451)	13,405)
Total liabilities	18,010)	19,078)	18,515)
Common stock, par value $0.01	9)	9)	9)
Treasury stock	(1,910)	(529)	—)
Additional paid-in capital	5,481)	5,411)	5,345)
Retained earnings	5,866)	2,865)	1,643)
Accumulated other comprehensive loss	(1,688)	(989)	(745)
Equity attributable to common shareowners	7,758)	6,767)	6,252)
Non-controlling interest	318)	327)	326)
Total equity	8,076)	7,094)	6,578)
Total liabilities and equity	26,086)	26,172)	25,093)

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

An analysis of the capital structure between 2020 and 2022 reveals a strategic shift toward deleveraging and increased equity accumulation. Total liabilities decreased from $18,515 million in 2020 to $18,010 million in 2022, while total equity rose from $6,578 million to $8,076 million during the same period, indicating an improvement in the overall solvency profile.

Long-Term Debt and Liability Management: A consistent downward trend is observed in long-term debt, net of the current portion, which declined from $10,036 million in 2020 to $8,702 million in 2022. This suggests a deliberate effort to reduce long-term borrowing. In contrast, accounts payable exhibited a steady increase, rising from $1,936 million to $2,833 million, indicating an increased utilization of trade credit to manage operational liquidity.
Short-Term Obligation Dynamics: Current liabilities experienced a spike in 2021, reaching $6,627 million, primarily due to the temporary recognition of $1,134 million in liabilities held for sale. By 2022, current liabilities moderated to $6,032 million. Accrued liabilities remained relatively stable, with a slight upward trajectory from $2,471 million to $2,610 million over the three-year window.
Equity Growth and Shareholder Returns: Total equity growth was driven largely by a substantial increase in retained earnings, which grew from $1,643 million in 2020 to $5,866 million in 2022, reflecting strong earnings retention. This growth was partially offset by aggressive share buyback activity, as treasury stock increased from zero in 2020 to a negative $1,910 million by the end of 2022.
Other Financial Obligations and Losses: Accumulated other comprehensive loss widened significantly, increasing from -$745 million in 2020 to -$1,688 million in 2022. Conversely, future pension and post-retirement obligations decreased from $524 million to $349 million, reducing the company's long-term unfunded commitments.

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