Carrier Global Corp. (NYSE:CARR)

Net Fixed Asset Turnover

The net fixed asset turnover ratio increased from 9.64 in 2020 to a peak of 11.29 in 2021, indicating that the company was more effective in utilizing its fixed assets to generate sales in 2021. However, this ratio declined to 9.11 in 2022, suggesting a reduction in efficiency or an increase in fixed assets without a proportional increase in sales during that year.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

This ratio, which accounts for operating lease right-of-use assets, followed a similar trend to the standard net fixed asset turnover. It rose from 6.72 in 2020 to 8.36 in 2021, reflecting improved asset utilization when incorporating leased assets. In 2022, it decreased to 7.08, indicating a slight reduction in efficiency relative to the previous year but remaining above the 2020 level.

Total Asset Turnover

The total asset turnover ratio showed a modest increase from 0.70 in 2020 to 0.79 in 2021, which reflects enhanced efficiency in using all assets to generate revenue. A slight decline to 0.78 was observed in 2022, implying relatively stable overall asset utilization with a minor decrease at the end of the period.

Equity Turnover

Equity turnover improved from 2.79 in 2020 to 3.05 in 2021, indicating that the company generated more revenue per unit of equity in 2021. This was followed by a decline to 2.63 in 2022, suggesting a decrease in efficiency in using shareholders' equity to produce sales compared to the prior year.

The financial data reveals several notable trends over the three-year period ending in December 2022. Net sales exhibited a significant increase from 2020 to 2021, rising from 17,456 million US dollars to 20,613 million US dollars. However, in 2022, net sales experienced a slight decline to 20,421 million US dollars, indicating a minor contraction after the prior year's growth.

Regarding fixed assets, there was a gradual increase in net fixed assets from 1,810 million US dollars in 2020 to 1,826 million US dollars in 2021, followed by a more pronounced increase in 2022 to 2,241 million US dollars. This pattern suggests increased investment in fixed assets in the latest year.

The net fixed asset turnover ratio, which measures the efficiency of fixed assets in generating sales, showed a mixed trend. It increased notably from 9.64 in 2020 to 11.29 in 2021, indicating improved utilization or productivity of fixed assets during that period. However, in 2022, the ratio declined to 9.11, falling below the 2020 level. This suggests that, despite increased asset investment, the conversion of fixed assets into net sales became less efficient in the most recent year.

Overall, the data points to strong sales growth and improved fixed asset efficiency in 2021, followed by a slight sales decline and reduced asset turnover efficiency in 2022, against a backdrop of increased fixed asset investment. This could imply challenges in maintaining sales growth proportionate to asset expansion during the latest year.

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

Net Sales

Net sales increased from $17,456 million in 2020 to $20,613 million in 2021, representing a substantial growth of approximately 18%. However, in 2022, net sales showed a slight decline to $20,421 million, a minimal decrease compared to 2021 but still higher than 2020 levels. This suggests a period of strong recovery or expansion followed by a stabilization or mild contraction in sales.

Fixed Assets, Net

Net fixed assets, including operating lease and right-of-use assets, decreased from $2,598 million in 2020 to $2,466 million in 2021, showing a reduction of about 5%. This decline was reversed in 2022, with net fixed assets increasing significantly to $2,883 million, indicating a possible reinvestment or acquisition of long-term assets in that year.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, which measures the efficiency of fixed assets in generating sales, improved markedly from 6.72 in 2020 to 8.36 in 2021. This suggests more effective utilization or higher productivity of fixed assets during that period. However, the ratio declined to 7.08 in 2022, which, despite being lower than the peak in 2021, remains above the 2020 level. This indicates some reduction in asset efficiency but not to the previous baseline, possibly reflecting the impact of increased asset investments or the slight drop in net sales.

Overall, the data indicates an initial phase of sales growth accompanied by improved asset utilization, followed by increased asset investment and a modest decline in sales and asset turnover. The trends suggest a strategic focus on strengthening the asset base while maintaining relatively stable sales performance.

Net Sales

Net sales demonstrated growth between 2020 and 2021, increasing from 17,456 million USD to 20,613 million USD, representing a significant rise. However, in 2022, net sales experienced a slight decline to 20,421 million USD, nearly stabilizing but indicating a minor decrease from the previous year.

Total Assets

Total assets showed a gradual upward trend from 25,093 million USD in 2020 to 26,172 million USD in 2021, followed by a marginal decrease to 26,086 million USD in 2022. This pattern suggests relative stability in asset base, with only slight fluctuation over the three-year period.

Total Asset Turnover

The total asset turnover ratio improved from 0.70 in 2020 to 0.79 in 2021, indicating enhanced efficiency in utilizing assets to generate sales. In 2022, there was a slight decline to 0.78; nonetheless, the turnover remained above the 2020 level, suggesting sustained operational efficiency.

The financial data reveals distinct trends over the three-year period ending December 31, 2022. Net sales increased substantially from 17,456 million US dollars in 2020 to a peak of 20,613 million US dollars in 2021, representing significant growth. However, there was a slight decline in net sales in 2022, dropping to 20,421 million US dollars, indicating a stabilization or minor contraction following the prior growth.

Equity attributable to common shareowners demonstrated a consistent upward trend across all three years. Starting at 6,252 million US dollars in 2020, equity grew steadily to 6,767 million in 2021 and further increased to 7,758 million in 2022. This indicates strengthening financial position and potentially retained earnings or capital infusions contributing to higher shareholder equity.

Equity turnover, which measures the efficiency of the use of equity to generate sales, showed variability. It increased from 2.79 in 2020 to a higher level of 3.05 in 2021, aligning with the rise in net sales and reflecting improved utilization of equity. However, in 2022, equity turnover decreased to 2.63, the lowest point in the observed period. This decline corresponds with the slight reduction in net sales and increased equity base, suggesting that the company's efficiency in generating sales from equity weakened during this year.

In summary, the company experienced strong sales growth and rising equity through 2021, followed by a slight sales decline and continued equity growth in 2022. This combination resulted in decreased equity turnover, signifying a marginal reduction in capital efficiency. The overall trend points to growth in the underlying equity base, while sales stabilized at a high level after 2021.