Carrier Global Corp. (NYSE:CARR)

The financial data over the three-year period reveals several notable trends concerning the company's liquidity and short-term financial position.

Current Assets

Current assets increased significantly from US$8,524 million at the end of 2020 to US$11,407 million at the end of 2021, representing a growth of approximately 33.8%. However, this was followed by a decline of about 13.4% to US$9,879 million as of December 31, 2022. Despite the decline in 2022, current assets remained above the 2020 level, indicating a generally higher level of liquid resources compared to the start of the period.

Current Liabilities

Current liabilities showed a similar pattern, rising from US$5,110 million in 2020 to US$6,627 million in 2021, an increase of approximately 29.7%. In 2022, current liabilities decreased to US$6,032 million, a reduction of about 9%. This reduction in current liabilities partially offsets the decline in current assets during the same period.

Current Ratio

The current ratio, which measures the company’s ability to cover its short-term liabilities with its short-term assets, experienced only minor fluctuations. The ratio improved slightly from 1.67 in 2020 to 1.72 in 2021, indicating a modest strengthening of liquidity. However, this was followed by a slight decrease to 1.64 in 2022. Despite this decrease, the current ratio remains above 1.6, suggesting the company maintained a relatively stable liquidity position throughout the period.

Overall, the company showed growth in current assets and liabilities in 2021, followed by reductions in both in 2022. The liquidity position, as reflected by the current ratio, remained relatively stable with only marginal fluctuations, indicating consistent management of short-term financial obligations during the analyzed period.