Carrier Global Corp. (NYSE:CARR)

Debt to Equity Ratio

The debt to equity ratio shows a consistent declining trend from 4.17 at the end of Q1 2020 to 1.09 by Q1 2023. This indicates a steady reduction in leverage and a strengthening equity base relative to debt. The ratio decreased substantially in 2020 and then stabilized around the range of 1.4 to 1.1 through 2021 to early 2023.

Debt to Equity Including Operating Lease Liability

Including operating lease liabilities, the ratio follows a similar downward trajectory, starting at 4.43 in Q1 2020 and falling to 1.15 in Q1 2023. The slightly higher values compared to the standard debt to equity ratio reflect the additional lease liabilities, but the trend confirms ongoing debt reduction efforts and improved capital structure.

Debt to Capital Ratio

The debt to capital ratio decreased from 0.81 in Q1 2020 to 0.52 in Q1 2023, demonstrating a consistent decline in debt as a proportion of total capital. This trend suggests increased financial stability, with capital increasingly funded by equity over time.

Debt to Capital Including Operating Lease Liability

When including operating lease liabilities, the debt to capital ratio is slightly higher but shows a similar decreasing pattern, moving from 0.82 in early 2020 to 0.53 in early 2023. This confirms the overall improvement in capital structure despite lease obligations.

Debt to Assets Ratio

The debt to assets ratio decreased steadily from 0.51 in Q1 2020 to 0.34 in Q1 2023, indicating a gradual reduction in the proportion of assets financed by debt. This reduction reflects a stronger asset base relative to debt and supports improved solvency.

Debt to Assets Including Operating Lease Liability

Including operating lease liabilities, the debt to assets ratio is slightly higher but still shows a consistent decline from 0.54 in early 2020 to 0.35 in early 2023. This pattern aligns with the reduction in leverage and overall improvement in the balance sheet strength.

Financial Leverage

Financial leverage decreased markedly from 8.16 at the start of 2020 to 3.25 in Q1 2023. This trend reflects a decline in the use of debt or other liabilities relative to equity to finance the company's assets, suggesting improved financial risk management and a stronger equity position over time. Some minor fluctuations occur post-2021, but the overall direction remains downward.

Total Debt

The total debt experienced a general decline over the periods observed. Starting from $11,247 million at the end of Q1 2020, the debt peaked at $12,029 million in Q2 2020 and then gradually decreased, reaching a low point of $8,561 million in Q1 2022. Following this low, the debt stabilized around the $8,800 to $8,900 million range by Q1 2023.

Equity Attributable to Common Shareowners

Equity showed a consistent upward trend from $2,697 million in Q1 2020 to $8,134 million in Q1 2023. This increase occurred steadily, with occasional moderate fluctuations, indicating growth in shareholder value over the timeframe.

Debt to Equity Ratio

The debt to equity ratio declined significantly from 4.17 in Q1 2020 to 1.09 in Q1 2023. This downward trend indicates an improving capital structure, with the company reducing leverage relative to equity. The most significant improvements occurred between early 2020 and early 2021, followed by a continued gradual decrease until the most recent quarter.

Total debt (including operating lease liability)

The total debt decreased significantly from $11,955 million in March 2020 to $10,869 million by December 2020, indicating a reduction in leverage during this period. This downward trend continued through 2021, stabilizing around the range of $10,200 million to $10,360 million. From March 2022 onward, there was a further decline in total debt, reaching $9,356 million by March 2023, suggesting ongoing efforts to manage or reduce overall indebtedness.

Equity attributable to common shareowners

Equity showed a strong upward trajectory throughout the entire period. It rose from $2,697 million in March 2020 to $6,252 million at the end of 2020, representing substantial growth in shareholders' equity within one year. This positive momentum persisted into 2021, with equity peaking slightly at $6,900 million in September before a minor dip in December. The upward trend resumed through 2022 and into early 2023, culminating at $8,134 million by March 2023. This consistent increase points to improved retained earnings, capital injections, or revaluation gains contributing to stronger equity levels.

Debt to equity ratio (including operating lease liability)

The debt-to-equity ratio demonstrated a marked decline, reflecting the combined effect of decreasing debt and increasing equity. Beginning at a high ratio of 4.43 in March 2020, it dropped steadily to 1.74 by December 2020. The ratio continued to decrease more gradually throughout 2021 and 2022, fluctuating slightly but maintaining an overall downward trend. By March 2023, the ratio reached its lowest point at 1.15, indicating an improved capital structure with relatively lower leverage and higher equity base. This trend suggests enhanced financial stability and potentially reduced risk associated with debt financing over the analyzed period.

The financial data reveals a clear trend of gradual reduction in total debt over the examined periods. Starting from approximately 11.25 billion USD in the first quarter of 2020, the total debt shows a peak near 12.03 billion USD in the second quarter of 2020, after which it steadily declines to a low of around 8.56 billion USD by the first quarter of 2022. Thereafter, total debt remains relatively stable, fluctuating slightly between approximately 8.56 billion USD and 8.85 billion USD through the first quarter of 2023.

Total capital exhibits a different pattern with a rise during the mid-periods, peaking near 17.07 billion USD in the third quarter of 2020. Subsequently, there is some volatility with decreases and increases; for instance, total capital decreases to approximately 15.26 billion USD by mid-2022 before rebounding to roughly 16.98 billion USD by the first quarter of 2023. Despite these fluctuations, total capital remains at elevated levels relative to the earlier quarters.

Examining the debt to capital ratio, there is a consistent downward trend across the timeline. The ratio decreases from a high of 0.81 in the first quarter of 2020 to about 0.52 by the first quarter of 2023. This steady decline indicates an improving capital structure, characterized by a proportionally lower reliance on debt financing relative to the overall capital base. The most significant decreases are seen in the initial quarters from 0.81 to 0.62 by the end of 2020, followed by a more gradual decline thereafter.

Overall, the data points to a strategic deleveraging effort with sustained reductions in total debt and a generally stable or growing capital base. The resultant lower debt to capital ratio suggests increased financial stability and potentially improved credit metrics over the periods assessed.

Total Debt Trends

Initially increased slightly, then steadily decreased from over 12 billion USD to under 9 billion USD, stabilizing towards the latest period.

Total Capital Trends

Peaked in mid-2020, then experienced some volatility but remained generally high, with a rebound toward the last reported quarter.

Debt to Capital Ratio

Consistently declined from above 0.8 to just above 0.5, indicative of reduced leverage and enhanced capital structure.

Total Debt (including operating lease liability)

The total debt showed a slight increase from March 31, 2020, reaching a peak around June 30, 2020, and September 30, 2020. Following this period, there was a notable decline by December 31, 2020, and this reduction continued steadily into 2021. From March 31, 2022, through March 31, 2023, the total debt remained relatively stable with minor fluctuations, ending with a modest decrease compared to earlier years.

Total Capital (including operating lease liability)

Total capital rose significantly from March 31, 2020, to September 30, 2020, reaching the highest level observed within the timeline in that third quarter of 2020. Thereafter, total capital decreased slightly by the end of 2020. Throughout 2021, capital levels remained relatively stable with minor declines evident toward the end of the year. In 2022, the capital figures fluctuated moderately, showing some recovery toward the latter part of the year and continued to increase gradually into the first quarter of 2023.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibited a continuous downward trend from 0.82 at the end of March 2020 to 0.53 by the end of the first quarter of 2023. This steady decline indicates an improving capital structure, with the proportion of debt relative to total capital decreasing over time. The most significant improvements occurred between March 2020 and December 2020, with the ratio dropping from 0.82 to 0.63. Subsequent periods saw more gradual reductions, demonstrating a consistent effort to reduce leverage or increase capital base relative to debt.

The analysis of the quarterly financial data reveals several notable trends and patterns related to total debt, total assets, and the debt-to-assets ratio over the observed periods.

Total Debt

Total debt showed a fluctuating but generally decreasing trend from March 31, 2020, through March 31, 2023. Initially, the debt increased slightly from 11,247 million USD in the first quarter of 2020 to a peak of 12,029 million USD in the second quarter of 2020. Afterward, a steady decline occurred, reaching lows around 8,561 million USD by the first quarter of 2022. There was a moderate increase in the third and fourth quarters of 2022, followed by stabilization near 8,850 million USD in the first quarter of 2023. Overall, the company reduced its total debt by approximately 20% from early 2020 to early 2023.

Total Assets

Total assets exhibited an overall growth trend throughout the same period, albeit with some fluctuations. Starting at 22,001 million USD in the first quarter of 2020, total assets grew to a peak of 26,172 million USD in the fourth quarter of 2021. There was a slight dip in the first half of 2022 to around 23,662 million USD, followed by a recovery reaching 26,411 million USD by the first quarter of 2023. This reflects an overall asset growth of about 20% over the three years, indicating ongoing investment and asset accumulation despite some periods of contraction.

Debt to Assets Ratio

The debt-to-assets ratio demonstrated a consistent downward trend, reflecting improving financial leverage and balance sheet strength. The ratio started at 0.51 in March 2020 and steadily decreased each quarter, reaching 0.34 by the first quarter of 2023. This reduction indicates that the company's liabilities as a proportion of its assets diminished over time, suggesting lower financial risk and a stronger equity position relative to debt.

In summary, the company has successfully managed to reduce its total debt substantially while simultaneously growing its asset base. The declining debt-to-asset ratio confirms a strengthening balance sheet and improved solvency. Despite some temporary fluctuations in assets and debt, the overall trajectory points to enhanced financial stability and resilience over the analyzed period.

Total debt (including operating lease liability)

The total debt exhibited a general decreasing trend over the observed periods. Starting at $11,955 million on March 31, 2020, it peaked slightly at $12,717 million in June 2020, followed by a gradual decline to $10,869 million by December 31, 2020. In 2021, total debt remained relatively stable around the $10,200-$10,360 million range. A more pronounced reduction occurred in 2022, with debt lowering to approximately $9,371 million by December 31, 2022, and maintained a similar level of $9,356 million by March 31, 2023. This overall downward movement suggests a consistent effort to manage and reduce debt levels over the three-year span.

Total assets

Total assets showed fluctuations across the quarters with an initial upward momentum from $22,001 million in March 2020 to a peak of $25,788 million in September 2021. Following this peak, assets experienced a slight decline in 2022, reaching $23,662 million in June 2022. However, the trend reversed towards the end of 2022 and early 2023, with total assets climbing back to $26,411 million by March 31, 2023. These variations indicate a dynamic asset base with phases of both expansion and contraction, ultimately yielding a modest net increase over the period.

Debt to assets ratio (including operating lease liability)

The debt to assets ratio demonstrated a consistent downward trend throughout the entire period. The ratio began at 0.54 in March 2020 and steadily declined to 0.43 by the end of 2020. This downward trajectory continued in 2021, reaching 0.39 in December, and further decreased to 0.36 by December 2022. The ratio ultimately reached 0.35 by March 2023. This improvement in the leverage ratio reflects a strengthening balance sheet position, driven by the combined effect of declining total debt and comparatively stable or increasing total assets.

Total Assets

Total assets experienced a general upward trend from March 2020 through the end of 2021, increasing from $22,001 million to $26,172 million by December 31, 2021. Following this peak, total assets saw a decline in the first half of 2022, dropping to $23,662 million by June 30, 2022. However, this was followed by a recovery and gradual increase through the remainder of 2022 and into the first quarter of 2023, reaching $26,411 million as of March 31, 2023. Overall, the asset base showed volatility but ended slightly above the levels seen at the end of 2021.

Equity Attributable to Common Shareowners

Equity attributable to common shareowners showed consistent growth throughout the entire period. Starting at $2,697 million in March 2020, equity progressively increased each quarter, reaching $6,767 million by December 31, 2021. Despite a slight decrease in the middle of 2022, equity rebounded strongly, closing at $8,134 million by March 31, 2023. This steady expansion in equity reflects strengthening shareholder value and capital base over the analyzed quarters.

Financial Leverage

Financial leverage, calculated as a ratio, declined significantly from 8.16 in March 2020 to 3.87 by December 2021. This suggests a strong reduction in reliance on debt relative to equity during this period. From late 2021 onwards, the ratio fluctuated mildly but maintained lower levels between 3.25 and 3.54 through the first quarter of 2023. The trend indicates a sustained lower financial leverage position, implying a more conservative capital structure and potentially reduced financial risk compared to early 2020.

Summary

The data reveals an overall strengthening in financial position across the assessed quarters. Despite some fluctuations in total assets, the company demonstrated sustained growth in equity and a marked reduction in financial leverage, indicative of improved balance sheet stability and a more robust equity capital foundation. The trends suggest a strategic emphasis on deleveraging and improving shareholder equity over the observed timeframe.