Return on Assets (ROA)
since 2020
Calculation
Carrier Global Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to common shareowners1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 13.55% | = | 100 | × | 3,534) | ÷ | 26,086) |
| Dec 31, 2021 | 6.36% | = | 100 | × | 1,664) | ÷ | 26,172) |
| Dec 31, 2020 | 7.90% | = | 100 | × | 1,982) | ÷ | 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).
1 US$ in millions
- Net Income Attributable to Common Shareowners
- The net income shows a declining trend from 2020 to 2021, decreasing from 1982 million US dollars to 1664 million US dollars. However, a significant increase occurred in 2022, reaching 3534 million US dollars, more than doubling the previous year's profit. This indicates a strong recovery and improved profitability in 2022.
- Total Assets
- Total assets increased slightly from 25093 million US dollars in 2020 to 26172 million US dollars in 2021. In 2022, total assets remained relatively stable with a marginal decrease to 26086 million US dollars. This stability suggests consistent asset management without major expansions or contractions during this period.
- Return on Assets (ROA)
- The ROA showed a decreasing trend from 7.9% in 2020 to 6.36% in 2021, reflecting a reduction in asset efficiency and profitability of the asset base during that year. In 2022, ROA increased substantially to 13.55%, indicating a significant improvement in generating earnings from the existing asset base. This improvement aligns with the surge in net income and signifies better utilization of assets.
Comparison to Competitors
Carrier Global Corp., ROA, 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 | 13.55% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Dec 31, 2021 | 6.36% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 7.90% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Carrier Global Corp. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 13.55% | 2.84% |
| Dec 31, 2021 | 6.36% | 1.86% |
| Dec 31, 2020 | 7.90% | 0.80% |
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., ROA, long-term trends, comparison to industry (industrials)
| Carrier Global Corp. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 13.55% | 3.31% |
| Dec 31, 2021 | 6.36% | 3.40% |
| Dec 31, 2020 | 7.90% | 0.04% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).