Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Carrier Global Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Fixed Asset Turnover
-
A steady increase was observed from the first quarter of 2021 through the third quarter of 2021, rising from 10.28 to a peak of 11.38. This was followed by a slight decline towards the end of 2021, stabilizing around 11.27 in the first half of 2022. However, a notable decrease occurred from mid-2022 onwards, dropping to 9.11 by the fourth quarter, before a marginal increase to 9.24 in the first quarter of 2023. This trend indicates higher efficiency in using net fixed assets in early 2021, followed by a decrease suggesting either increased asset base or reduced sales efficiency in recent quarters.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
Similar to the traditional net fixed asset turnover, this metric shows growth in 2021, moving from 7.17 in the first quarter to 8.4 in the third quarter. The ratio remained relatively stable towards the end of 2021 and into the first half of 2022 before declining in the latter half of 2022, reaching its lowest point of 7.08 in the fourth quarter. A small recovery to 7.25 was recorded in early 2023. The inclusion of right-of-use assets and operating leases reflects a comparable pattern but consistently at lower levels than the traditional measure, suggesting these assets contribute significantly to the asset base with comparatively less turnover efficiency.
- Total Asset Turnover
-
This ratio exhibited a general upward trend throughout 2021 and the first half of 2022, increasing from 0.73 to 0.86 particularly by June 2022, indicating improved utilization of total assets to generate revenues. Post mid-2022, the turnover ratio showed a decline, dropping to 0.78 by the end of the year and somewhat stabilizing at 0.8 in the first quarter of 2023. The fluctuations suggest variability in asset productivity or sales performance, with peak efficiency noted in mid-2022 and a slight reduction thereafter.
- Equity Turnover
-
The equity turnover ratio showed moderate fluctuations across the periods. Starting at 2.82 in early 2021, it increased to a high of 3.05 in the last quarter of 2021, indicating higher revenue relative to shareholder equity. The ratio then experienced some volatility, declining to 2.63 by the end of 2022 and further decreasing slightly to 2.59 in the first quarter of 2023. This pattern implies some reduction in the efficiency with which equity is utilized to generate revenue, possibly reflecting changes in equity base or sales dynamics.
Net Fixed Asset Turnover
Carrier Global Corp., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | ||||
| Fixed assets, net | 2,277) | 2,241) | 2,055) | 1,805) | 1,825) | 1,826) | 1,764) | 1,837) | 1,777) | ||||
| Long-term Activity Ratio | |||||||||||||
| Net fixed asset turnover1 | 9.24 | 9.11 | 9.95 | 11.27 | 11.27 | 11.29 | 11.38 | 10.74 | 10.28 | ||||
| Benchmarks | |||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||
| Boeing Co. | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | ||||
| Caterpillar Inc. | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | ||||
| Eaton Corp. plc | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | ||||
| GE Aerospace | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | ||||
| Honeywell International Inc. | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | ||||
| Lockheed Martin Corp. | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | ||||
| RTX Corp. | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | ||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Fixed assets, net
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 2,277 = 9.24
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrate a fluctuating trend over the examined periods. Initially, there was a steady increase from 4699 million US dollars at the end of March 2021 to a peak of 5440 million by June 2021. This was followed by a slight decline and then stabilization around the 5100 to 5450 million range through the remainder of 2021 and 2022. The first quarter of 2023 shows a moderate rise to 5273 million, indicating a potential recovery or growth phase.
- Fixed Assets, Net
- Net fixed assets exhibit a general upward trajectory throughout the periods assessed. The asset base grew from 1777 million US dollars in March 2021, with minor fluctuations, to reach 2277 million by March 2023. Noteworthy growth occurs particularly in the latter half of 2022, suggesting significant investment or asset capitalization during this period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio starts at a relatively high level, 10.28, in March 2021 and increases slightly to peak around 11.38 in September 2021. This period signifies an efficient use of fixed assets to generate sales. However, from the end of 2021 onward, the ratio progressively declines, dropping to 9.24 by March 2023. This decline corresponds with the increase in net fixed assets and relatively less pronounced growth in net sales, implying a potential decrease in asset utilization efficiency.
- Overall Insights
- The data reflects that while net sales have been generally stable with recent growth signs, the company has been expanding its fixed asset base significantly. The declining fixed asset turnover ratio over time indicates the growth of fixed assets has outpaced sales growth, a factor that may warrant management attention regarding asset utilization and investment efficiency. This balance between asset growth and sales generation will be critical for financial performance in the upcoming periods.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Carrier Global Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | ||||
| Fixed assets, net | 2,277) | 2,241) | 2,055) | 1,805) | 1,825) | 1,826) | 1,764) | 1,837) | 1,777) | ||||
| Operating lease right-of-use assets | 625) | 642) | 625) | 595) | 596) | 640) | 626) | 786) | 770) | ||||
| Fixed assets, net (including operating lease, right-of-use asset) | 2,902) | 2,883) | 2,680) | 2,400) | 2,421) | 2,466) | 2,390) | 2,623) | 2,547) | ||||
| Long-term Activity Ratio | |||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.25 | 7.08 | 7.63 | 8.47 | 8.50 | 8.36 | 8.40 | 7.52 | 7.17 | ||||
| Benchmarks | |||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||
| Eaton Corp. plc | 5.65 | 5.58 | 5.73 | 5.59 | 5.58 | 5.60 | 5.62 | 5.42 | 5.30 | ||||
| RTX Corp. | 4.04 | 3.95 | 4.01 | 3.93 | 3.87 | 3.80 | 3.89 | 3.76 | 3.63 | ||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Fixed assets, net (including operating lease, right-of-use asset)
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 2,902 = 7.25
2 Click competitor name to see calculations.
The financial performance exhibits fluctuations across the analyzed periods, with net sales demonstrating a cyclical pattern. Initially, net sales rose from $4,699 million to a peak of $5,440 million in the second quarter of 2021, followed by a modest decline to $5,133 million by the end of the same year. In 2022, net sales decreased in the first quarter to $4,654 million but gradually increased mid-year, reaching $5,451 million in the third quarter, then declining again towards year-end to $5,105 million. The first quarter of 2023 shows a slight recovery to $5,273 million.
Net fixed assets, which include operating lease and right-of-use assets, present a generally upward trend over the period. There was a decrease during the first three quarters of 2021 from $2,547 million to $2,390 million but followed by a gradual increase through the subsequent quarters. The highest recorded value is $2,902 million in the first quarter of 2023, indicating ongoing investment or capitalization of lease assets.
The net fixed asset turnover ratio, reflecting the efficiency in utilizing fixed assets to generate sales, initially improved from 7.17 in the first quarter of 2021 to a high of 8.5 in the first quarter of 2022. However, this efficiency declined steadily afterward, falling to 7.08 by the end of 2022 before slightly recovering to 7.25 in the first quarter of 2023. The peak turnover coincides with the period of lower fixed assets and higher sales, suggesting a more efficient use of the asset base at that time. Conversely, the reduction in turnover ratio in the later periods aligns with rising fixed assets and somewhat fluctuating sales, implying a relative decrease in asset utilization efficiency.
In summary, while net sales show variability with some recovery signs at the beginning of 2023, fixed assets are trending upwards, reflecting increased asset holdings. The asset turnover ratio indicates that asset utilization efficiency peaked in early 2022 but has since declined, suggesting potential challenges in generating sales growth proportionate to asset expansion.
Total Asset Turnover
Carrier Global Corp., total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | ||||
| Total assets | 26,411) | 26,086) | 25,350) | 23,662) | 24,193) | 26,172) | 25,788) | 25,738) | 24,868) | ||||
| Long-term Activity Ratio | |||||||||||||
| Total asset turnover1 | 0.80 | 0.78 | 0.81 | 0.86 | 0.85 | 0.79 | 0.78 | 0.77 | 0.73 | ||||
| Benchmarks | |||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||
| Boeing Co. | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | ||||
| Caterpillar Inc. | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | ||||
| Eaton Corp. plc | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | ||||
| GE Aerospace | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | ||||
| Honeywell International Inc. | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | ||||
| Lockheed Martin Corp. | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | ||||
| RTX Corp. | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | ||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2023 Calculation
Total asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Total assets
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 26,411 = 0.80
2 Click competitor name to see calculations.
The quarterly financial data indicates several notable trends in the company's net sales, total assets, and asset efficiency over the analyzed periods.
- Net Sales
- Net sales exhibited fluctuations across the quarters. Initially, net sales increased from 4699 million to a peak of 5440 million by June 30, 2021, followed by a slight decline and stabilization near the 5100 to 5400 million range throughout 2021 and 2022. A notable dip appeared in the first quarter of 2022 at 4654 million, but sales subsequently recovered, reaching 5273 million by March 31, 2023. The pattern suggests periodic volatility, possibly influenced by external market conditions or seasonality, but generally maintaining a range around the mid-5000 million level.
- Total Assets
- Total assets demonstrated relative stability with moderate variations. Assets increased gradually from 24868 million in March 2021 to approximately 26172 million by the end of that year, suggesting asset growth. However, a decline was observed in early 2022, reaching 23662 million in June, possibly due to asset disposals or valuation adjustments. Following this, assets grew steadily again, ultimately rising to 26411 million by March 2023. This indicates a recovery and expansion phase after the mid-2022 dip, potentially reflecting strategic asset management or investment activities.
- Total Asset Turnover
- The total asset turnover ratio, representing the efficiency of asset use to generate sales, showed a positive trend in early 2022, rising from 0.73 in March 2021 to a peak of 0.86 by June 2022. This suggests improved utilization of assets to generate revenue during this period. However, turnover declined slightly afterward, settling around 0.78 to 0.80 by early 2023. Despite the recent tapering, the overall movement indicates an enhanced operational efficiency compared to the initial period, with some regression in the latest quarter.
In summary, the company experienced fluctuating net sales with a tendency to recover after downturns, stable total assets with temporary decreases followed by growth, and improved asset turnover efficiency that slightly moderated at the end. The data reflects dynamic but resilient operational and asset management performance over the analyzed timeframe.
Equity Turnover
Carrier Global Corp., equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | ||||
| Equity attributable to common shareowners | 8,134) | 7,758) | 7,152) | 6,696) | 7,101) | 6,767) | 6,900) | 6,756) | 6,489) | ||||
| Long-term Activity Ratio | |||||||||||||
| Equity turnover1 | 2.59 | 2.63 | 2.86 | 3.04 | 2.90 | 3.05 | 2.91 | 2.92 | 2.82 | ||||
| Benchmarks | |||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | ||||
| Caterpillar Inc. | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | ||||
| Eaton Corp. plc | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | ||||
| GE Aerospace | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | ||||
| Honeywell International Inc. | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | ||||
| Lockheed Martin Corp. | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | ||||
| RTX Corp. | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | ||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2023 Calculation
Equity turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Equity attributable to common shareowners
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 8,134 = 2.59
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a fluctuating pattern over the reported periods. Initially, there was an increase from $4,699 million in March 2021 to a peak of $5,440 million in June 2021, followed by a slight decline and stabilization around $5,100 to $5,340 million through December 2021. The subsequent year started with a decrease to $4,654 million in March 2022, then rose again mid-year to $5,451 million by September 2022. The most recent data shows a moderate rebound to $5,273 million in March 2023 after a dip in the fourth quarter of 2022. The variability suggests sensitivity to seasonal or market factors but generally maintains a range around $5,000 million.
- Equity Attributable to Common Shareowners
- Equity attributable to common shareowners demonstrated a steady upward trend throughout the reported periods. Beginning at $6,489 million in March 2021, it increased consistently with minor fluctuations, reaching $8,134 million by March 2023. Notable increments occurred in the final quarters of 2022 and early 2023, indicating strengthening shareholder equity. This positive growth reflects an overall enhancement in retained earnings or capital contributions.
- Equity Turnover Ratio
- The equity turnover ratio showed slight variability with a general declining trend in the later periods. Starting near 2.82 in March 2021, it increased slightly to 3.05 by December 2021. However, in 2022 and early 2023, the ratio decreased steadily to 2.59 by March 2023. This reduction suggests that sales generation relative to shareholder equity has weakened somewhat, potentially due to either slower sales growth relative to equity or an increase in equity outpacing sales.