Debt to Equity
since 2020
Calculation
Carrier Global Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Equity attributable to common shareowners1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.14 | = | 8,842) | ÷ | 7,758) |
| Dec 31, 2021 | 1.43 | = | 9,696) | ÷ | 6,767) |
| Dec 31, 2020 | 1.64 | = | 10,227) | ÷ | 6,252) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$ in millions
Carrier Global Corp. has demonstrated a consistent improvement in its solvency profile between 2020 and 2022, characterized by a steady reduction in financial leverage and a strengthening of the company's capital structure.
- Long-term Debt Trends
- A consistent downward trend is observed in long-term debt, including the current portion. Total debt obligations decreased from US$ 10,227 million in 2020 to US$ 9,696 million in 2021, and further to US$ 8,842 million by December 31, 2022. This represents a cumulative reduction of approximately 13.5% over the analyzed period.
- Equity Growth
- Equity attributable to common shareowners increased steadily throughout the three-year period. The balance grew from US$ 6,252 million in 2020 to US$ 6,767 million in 2021, reaching US$ 7,758 million by the end of 2022. This growth reflects a sustained increase in the company's net asset base.
- Debt to Equity Ratio Analysis
- The convergence of decreasing liabilities and increasing equity resulted in a significant decline in the debt to equity ratio. The ratio shifted from 1.64 in 2020 to 1.43 in 2021, and concluded at 1.14 in 2022. This trajectory indicates a strategic shift toward a more conservative financial structure and a reduced reliance on external leverage to fund operations.
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Comparison to Competitors
Carrier Global Corp., debt to equity, long-term trends, comparison to competitors
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.14 | — | 2.33 | 0.51 | 0.89 | 1.17 | 1.68 | 0.44 |
| Dec 31, 2021 | 1.43 | — | 2.29 | 0.52 | 0.87 | 1.06 | 1.07 | 0.43 |
| Dec 31, 2020 | 1.64 | — | 2.42 | 0.54 | 2.11 | 1.28 | 2.02 | 0.44 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Sector (Capital Goods)
Carrier Global Corp., debt to equity, long-term trends, comparison to sector (capital goods)
| Carrier Global Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.14 | 1.33 |
| Dec 31, 2021 | 1.43 | 1.26 |
| Dec 31, 2020 | 1.64 | 1.75 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Industrials)
Carrier Global Corp., debt to equity, long-term trends, comparison to industry (industrials)
| Carrier Global Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.14 | 1.42 |
| Dec 31, 2021 | 1.43 | 1.37 |
| Dec 31, 2020 | 1.64 | 1.82 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).