Carrier Global Corp. (NYSE:CARR)

The data reveals several notable trends across key financial ratios over the three-year period.

Asset Turnover

Both reported and adjusted total asset turnover ratios show a moderate increase from 0.7 in 2020 to around 0.79-0.8 in 2021, followed by a slight decline or stabilization in 2022. This suggests an improvement in asset utilization efficiency during the first year, with a plateau or marginal decline thereafter.

Current Ratio

The reported current ratio and its adjusted counterpart exhibit a modest upward movement from 2020 to 2021, increasing from around 1.67-1.73 to approximately 1.7-1.77, but then experience a slight decrease in 2022. This pattern indicates relatively stable short-term liquidity with some fluctuation but no drastic deterioration.

Leverage Ratios

Reported and adjusted debt to equity ratios steadily decline across the period, from 1.64 and 1.52 in 2020 to 1.14 and 1.09 in 2022, respectively. Similarly, debt to capital ratios reduce gradually from about 0.62-0.60 to 0.53-0.52 by 2022. Financial leverage ratios also decrease, notably from reported 4.01 to 3.36 and adjusted 3.42 to 2.97. These trends collectively indicate a consistent reduction in reliance on debt financing and an improvement in capital structure over time.

Profitability Ratios

The reported net profit margin experiences a dip from 11.35% in 2020 to 8.07% in 2021, then rebounds strongly to 17.31% in 2022. The adjusted net profit margin follows a similar but more variable pattern, falling from 15.15% in 2020 to 6.89% in 2021, then climbing back to 13.68% in 2022. Return on equity (ROE) also declines in 2021 relative to 2020 but rises sharply by 2022, with the reported figure increasing from 31.7% to 45.55% and the adjusted figure from 36.43% to 32.14%. Return on assets (ROA) mirrors these movements, dropping in 2021 and recovering significantly by 2022. This indicates a temporary dip in profitability in 2021, followed by a robust recovery and improved operational effectiveness in 2022.

Net Sales

Net sales increased from US$17,456 million in 2020 to US$20,613 million in 2021, representing a significant growth. However, in 2022, net sales slightly declined to US$20,421 million, indicating a minor setback following the previous year's growth.

Total Assets

Total assets showed a steady upward trend from US$25,093 million in 2020 to US$26,172 million in 2021. In 2022, total assets slightly decreased to US$26,086 million, indicating relative stability in asset base with minimal decline.

Reported Total Asset Turnover

The reported total asset turnover improved from 0.70 in 2020 to 0.79 in 2021, reflecting enhanced efficiency in utilizing assets to generate sales. In 2022, this ratio marginally dipped to 0.78 but remained elevated compared to 2020, suggesting sustained high asset utilization efficiency.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, increasing from US$24,851 million in 2020 to US$25,838 million in 2021, then slightly decreasing to US$25,790 million in 2022. This indicates that after adjustments, the asset base remained relatively consistent with the reported total assets' trend.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio improved from 0.70 in 2020 to 0.80 in 2021, indicating better asset efficiency after adjustments. In 2022, the ratio slightly declined to 0.79, showing sustained efficiency despite the small decrease.

Current assets

Current assets increased significantly from 8,524 million US dollars at the end of 2020 to 11,407 million US dollars at the end of 2021, indicating improved liquidity or asset accumulation. However, there was a decline to 9,879 million US dollars by the end of 2022, suggesting a partial reversal or reallocation of assets.

Current liabilities

Current liabilities also showed an upward trend from 5,110 million US dollars in 2020 to 6,627 million US dollars in 2021, followed by a decrease to 6,032 million US dollars in 2022. This pattern indicates a rise and then some reduction in short-term obligations.

Reported current ratio

The reported current ratio, reflecting the company's ability to meet short-term liabilities with current assets, improved slightly from 1.67 in 2020 to 1.72 in 2021 but declined marginally to 1.64 in 2022. This suggests that liquidity strengthened initially but then weakened somewhat, though it remained above 1, indicating that current assets still exceed current liabilities overall.

Adjusted current assets

The adjusted current assets, which may exclude certain non-liquid assets or account for valuation differences, rose steadily from 8,731 million US dollars in 2020 to 11,636 million US dollars in 2021 before decreasing to 10,195 million US dollars in 2022. The trend aligns closely with reported current assets, indicating similar liquidity behavior under adjusted measurement.

Adjusted current liabilities

Adjusted current liabilities followed a pattern similar to the reported liabilities, increasing from 5,061 million US dollars in 2020 to 6,573 million US dollars in 2021, then falling to 6,008 million US dollars in 2022, indicating some reduction in short-term obligations after an initial rise.

Adjusted current ratio

The adjusted current ratio improved from 1.73 in 2020 to 1.77 in 2021, indicating enhanced short-term financial health after adjustments. However, it declined slightly to 1.7 in 2022, showing a minor deterioration in this measure of liquidity, although the ratio remains relatively strong over the three years.

The financial data reveals a consistent improvement in the company's capital structure over the three-year period ending December 31, 2022. Both total debt and adjusted total debt exhibit a declining trend, indicating a reduction in the company's leverage.

Total Debt

There is a decrease from US$ 10,227 million in 2020 to US$ 9,696 million in 2021, followed by a further reduction to US$ 8,842 million in 2022. This steady decline points to an active effort to manage and reduce debt levels.

Equity Attributable to Common Shareowners

Equity shows a rising trend, increasing from US$ 6,252 million in 2020 to US$ 6,767 million in 2021 and reaching US$ 7,758 million in 2022. This growth enhances the company’s net worth and financial stability.

Reported Debt to Equity Ratio

This ratio declines progressively from 1.64 in 2020 to 1.43 in 2021 and further to 1.14 in 2022, reflecting improved solvency and a stronger equity base relative to debt.

Adjusted Total Debt and Adjusted Total Equity

Adjusted total debt decreases from US$ 11,030 million in 2020 to US$ 9,503 million in 2022, consistent with the trend observed in reported total debt. Meanwhile, adjusted total equity increases from US$ 7,257 million in 2020 to US$ 8,689 million in 2022, highlighting the enhancement in shareholder value after adjustments.

Adjusted Debt to Equity Ratio

This ratio declines from 1.52 in 2020 to 1.38 in 2021 and then to 1.09 in 2022, corroborating the trend of improved capital structure quality when considering adjustments.

Overall, the company's financial position has strengthened during the period analyzed, characterized by decreased leverage and increased equity. This suggests enhanced financial resilience and potentially improved capacity to absorb financial shocks or pursue investment opportunities without excessive reliance on debt financing.

Total Debt

The total debt showed a declining trend over the three-year period, decreasing from $10,227 million in 2020 to $8,842 million in 2022. This represents a reduction of approximately 13.5%, indicating a deliberate effort to reduce leverage or improve the debt profile.

Total Capital

Total capital remained relatively stable, with a slight increase from $16,479 million in 2020 to $16,600 million in 2022. The marginal growth of about 0.7% implies that the company's capital base did not significantly expand during this timeframe.

Reported Debt to Capital Ratio

The reported debt to capital ratio consistently decreased from 0.62 in 2020 to 0.53 in 2022. This downward trend aligns with the reduction in total debt and the stable capital levels, suggesting an overall improvement in the company’s leverage position and a stronger equity base relative to debt.

Adjusted Total Debt

Adjusted total debt, which likely accounts for off-balance-sheet obligations or other adjustments, also exhibited a similar downward pattern, moving from $11,030 million in 2020 to $9,503 million in 2022. This 13.9% decrease confirms the trend of debt reduction observed in the reported figures.

Adjusted Total Capital

The adjusted total capital showed a slight decline from $18,287 million in 2020 to $17,846 million in 2021, followed by a moderate recovery to $18,192 million in 2022. Overall, the adjusted capital remained relatively stable, with minor fluctuations over the period.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 0.60 in 2020 to 0.52 in 2022. This consistent decrease further supports the observation of reduced financial leverage when considering adjusted figures. The company's financial leverage improved, indicating a stronger balance sheet and potentially lower financial risk.

The financial data indicates several key trends over the three-year period ending December 31, 2022. Total assets demonstrated a moderate increase from 25,093 million US dollars in 2020 to 26,172 million in 2021, followed by a slight decline to 26,086 million in 2022. This shows relative stability in the asset base with minimal fluctuation after an initial increase.

Equity attributable to common shareowners exhibited consistent growth throughout the period. It rose from 6,252 million US dollars in 2020 to 6,767 million in 2021, and further to 7,758 million in 2022. This upward trend signifies strengthening shareholder equity and potentially improved financial health or retained earnings accumulation.

The reported financial leverage ratio decreased steadily from 4.01 in 2020 to 3.87 in 2021, and further to 3.36 in 2022. This decline highlights a reduction in leverage, implying a lower reliance on debt relative to equity, which may suggest an improved capital structure and risk profile over time.

Adjusted total assets followed a similar pattern as reported total assets, increasing from 24,851 million US dollars in 2020 to 25,838 million in 2021, and then slightly declining to 25,790 million in 2022. Adjusted total equity moved upward from 7,257 million in 2020 to 7,493 million in 2021, with a more significant increase to 8,689 million in 2022. This confirms the trend of strengthening equity when considering adjusted values.

Adjusted financial leverage exhibited a slight increase from 3.42 in 2020 to 3.45 in 2021, before decreasing substantially to 2.97 in 2022. This indicates that while leverage remained relatively stable between 2020 and 2021 under adjusted figures, there was a meaningful reduction in leverage by 2022, aligning with the pattern observed in reported financial leverage and reinforcing the conclusion of improved capital structure management.

In summary, the data reflects a stable asset base, consistent equity growth, and a general reduction in financial leverage over the observed period, which collectively suggest an enhancement in financial strength and potentially a more conservative financing strategy.

Net income attributable to common shareowners

The net income experienced a decline from 1982 million USD in 2020 to 1664 million USD in 2021, followed by a significant increase to 3534 million USD in 2022. This indicates a strong recovery and improvement in profitability after a drop in the intermediate year.

Net sales

Net sales grew notably from 17456 million USD in 2020 to 20613 million USD in 2021, representing a robust sales growth. However, in 2022, net sales slightly decreased to 20421 million USD, showing a marginal contraction but generally maintaining a high revenue level.

Reported net profit margin

The reported net profit margin declined substantially from 11.35% in 2020 to 8.07% in 2021, indicating reduced profitability relative to sales during that year. In 2022, the margin rebounded strongly to 17.31%, demonstrating improved cost efficiency or higher profit recognition relative to sales.

Adjusted net income from operations

Adjusted net income from operations showed a marked decrease from 2644 million USD in 2020 to 1420 million USD in 2021, reflecting operational challenges or increased adjustments affecting income. In 2022, adjusted income rose significantly again to 2793 million USD, nearing the 2020 level and signaling operational recovery.

Adjusted net profit margin

The adjusted net profit margin followed a similar trend to the reported margin, dropping from 15.15% in 2020 to 6.89% in 2021, indicating a period of lower adjusted profitability. In 2022, it improved to 13.68%, showing a partial restoration of operational efficiency in relation to sales.

The analyzed financial data reveals notable fluctuations and overall growth in several key metrics over the three-year period ending December 31, 2022.

Net income attributable to common shareowners

The net income decreased from $1,982 million in 2020 to $1,664 million in 2021, indicating a downturn in profitability during that year. However, 2022 saw a significant recovery and growth, with net income rising sharply to $3,534 million, surpassing the 2020 level by a large margin.

Equity attributable to common shareowners

Equity showed a consistent upward trajectory, increasing steadily from $6,252 million in 2020 to $6,767 million in 2021, and then to $7,758 million in 2022. This reflects a strengthening of the company’s equity base over the period.

Reported Return on Equity (ROE)

The reported ROE declined from a high of 31.7% in 2020 to 24.59% in 2021, mirroring the drop in net income during that year. In 2022, ROE surged to 45.55%, indicating a substantially improved efficiency in generating profit from equity holders’ investments.

Adjusted net income from operations

This metric exhibited volatility similar to net income, falling from $2,644 million in 2020 to $1,420 million in 2021, before recovering to $2,793 million in 2022. The decline in 2021 suggests operational challenges or adjustments, followed by a partial but not full recovery by 2022.

Adjusted total equity

Adjusted equity followed a growing trend, increasing from $7,257 million in 2020 to $7,493 million in 2021 and further to $8,689 million in 2022. This consistent increase indicates a strengthening capital position on an adjusted basis.

Adjusted Return on Equity (ROE)

Adjusted ROE declined significantly from 36.43% in 2020 to 18.95% in 2021, reflecting weaker operational performance that year. It improved to 32.14% in 2022, suggesting enhanced operational efficiency but still below the 2020 peak.

Overall, the data displays a challenging year in 2021 marked by reduced profitability and returns, followed by a strong recovery in 2022 particularly evident in net income and reported ROE. Equity levels consistently increased throughout the period, supporting the company’s financial foundation. The divergence between reported and adjusted figures highlights the impact of certain adjustments on operational profitability and return measures.

The financial data reveals several notable trends over the three-year period ending December 31, 2022.

Net Income Attributable to Common Shareowners

The net income showed a decline from 1,982 million USD in 2020 to 1,664 million USD in 2021, indicating a contraction during that year. However, a substantial recovery occurred in 2022, with net income reaching 3,534 million USD, more than doubling the previous year's figure and significantly surpassing the 2020 level.

Total Assets

Total assets increased slightly from 25,093 million USD in 2020 to 26,172 million USD in 2021, an increase of approximately 4.2%. In 2022, total assets experienced a minor decrease to 26,086 million USD, effectively returning to near the 2021 level. This suggests relative stability in asset base following a moderate increase.

Reported Return on Assets (ROA)

Reported ROA dropped from 7.9% in 2020 to 6.36% in 2021, reflecting less efficient use of assets during that period. In 2022, reported ROA more than doubled to 13.55%, indicating a marked improvement in profitability relative to asset size.

Adjusted Net Income from Operations

The adjusted net income followed a similar pattern to net income, with a sharp decline from 2,644 million USD in 2020 to 1,420 million USD in 2021. This was followed by a notable recovery to 2,793 million USD in 2022, nearing the 2020 performance. The adjusted figures suggest operational earnings volatility over the period.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, rising modestly from 24,851 million USD in 2020 to 25,838 million USD in 2021, then declining slightly to 25,790 million USD in 2022. Overall, adjusted assets remained relatively constant with minor fluctuations.

Adjusted Return on Assets (ROA)

Adjusted ROA decreased significantly from 10.64% in 2020 to 5.5% in 2021, indicating a drop in operational efficiency during that year. However, in 2022, adjusted ROA rebounded strongly to 10.83%, almost recovering to the pre-2021 level. This recovery highlights an improvement in operational profitability in relation to asset utilization.

In summary, the data points to a challenging year in 2021 characterized by decreased net income and operational earnings, along with diminished returns on assets. The subsequent year, 2022, demonstrated significant recovery and profitability improvements, restoring and in some cases exceeding prior performance levels. Asset levels remained fairly stable throughout the period, indicating that the firm's growth in profitability was achieved mainly through improved operational results rather than substantial asset expansion.