Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Carrier Global Corp., profitability 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Gross profit margin
- The gross profit margin demonstrates a gradual downward trend from March 31, 2020, through March 31, 2023. Starting at 29.27% in March 2020, the margin rises slightly in the following quarters to a peak of 29.69% in September 2020, then steadily declines to 26.37% by March 2023. This pattern indicates a persistent reduction in the proportion of sales revenue retained after accounting for the cost of goods sold over the analyzed period.
- Operating profit margin
- The operating profit margin exhibits notable fluctuations during the period under review. Beginning at 17.66% in March 2020 and rising to a peak of 18.65% in September 2020, it decreases to 12.83% by March 2021, followed by a recovery to a high of 22.23% at the end of 2022. However, this margin declines sharply again to 15.84% in March 2023. These variations suggest volatility in operational efficiency and cost management, potentially influenced by changes in operating expenses or other operational factors.
- Net profit margin
- The net profit margin follows a somewhat similar pattern to the operating margin, with an initial increase from 11.35% in March 2020 to 12.65% in September 2020 followed by a dip to 8.07% in March 2021. Subsequently, it recovers strongly, reaching its highest value of 17.55% in December 2022 before falling back to 12.02% by March 2023. This behavior indicates variability in overall profitability after all expenses and taxes, but with periods of significant improvement.
- Return on equity (ROE)
- The return on equity shows a generally positive trend with pronounced peaks and troughs. It starts at 31.7% in March 2020, rising steadily to a high of 36.94% in September 2020 before decreasing to a low of 24.59% in March 2021. Afterwards, ROE rallies strongly, reaching its peak at 50.17% in December 2022, but declines again to 31.08% by March 2023. The fluctuations suggest changes in the company's ability to generate profit from shareholders' equity, possibly affected by varying net income or equity base changes.
- Return on assets (ROA)
- The return on assets increases overall during the analyzed time frame with some volatility. Beginning at 7.9% in March 2020, it rises to 9.7% by September 2020, dips to 6.36% in March 2021, and then climbs consistently to a peak of 14.15% in December 2022. Subsequently, it decreases to 9.57% by March 2023. This pattern indicates improvements in the company's efficiency in utilizing assets to generate earnings, despite fluctuations reflecting operational or asset structure changes.
Return on Sales
Return on Investment
Gross Profit Margin
Carrier Global Corp., gross profit margin 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Gross margin | 1,378) | 1,247) | 1,477) | 1,447) | 1,293) | 1,366) | 1,601) | 1,619) | 1,394) | 1,285) | 1,561) | 1,141) | 1,122) | |||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | 4,594) | 5,002) | 3,972) | 3,888) | |||||
| Profitability Ratio | ||||||||||||||||||
| Gross profit margin1 | 26.37% | 26.76% | 27.30% | 28.06% | 28.58% | 29.01% | 29.39% | 29.69% | 29.46% | 29.27% | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||
| Boeing Co. | 7.20% | 5.26% | -1.41% | 2.74% | 3.20% | 4.84% | -0.25% | -1.35% | -7.82% | -9.78% | — | — | — | |||||
| Caterpillar Inc. | 28.74% | 26.91% | 26.14% | 25.52% | 25.71% | 26.30% | 27.08% | 26.83% | 25.98% | 25.47% | — | — | — | |||||
| Eaton Corp. plc | 33.64% | 33.19% | 32.83% | 32.55% | 32.36% | 32.28% | 32.14% | 32.23% | 30.80% | 30.52% | — | — | — | |||||
| GE Aerospace | 24.24% | 24.55% | 24.52% | 25.22% | 24.26% | 24.19% | 24.97% | 22.43% | 18.80% | 17.26% | — | — | — | |||||
| Honeywell International Inc. | 37.36% | 36.99% | 35.56% | 34.22% | 32.95% | 31.98% | 32.34% | 32.06% | 31.52% | 32.07% | — | — | — | |||||
| Lockheed Martin Corp. | 12.74% | 12.56% | 12.99% | 13.39% | 13.36% | 13.52% | 13.34% | 13.00% | 13.26% | 13.23% | — | — | — | |||||
| RTX Corp. | 20.53% | 20.38% | 20.49% | 20.17% | 19.94% | 19.40% | 17.59% | 15.79% | 13.98% | 15.08% | — | — | — | |||||
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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2023 Calculation
Gross profit margin = 100
× (Gross marginQ1 2023
+ Gross marginQ4 2022
+ Gross marginQ3 2022
+ Gross marginQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (1,378 + 1,247 + 1,477 + 1,447)
÷ (5,273 + 5,105 + 5,451 + 5,211)
= 26.37%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's performance from March 31, 2020, through March 31, 2023.
- Net Sales
- Net sales demonstrated a generally upward trend from March 31, 2020, to the end of 2021, increasing from $3,888 million in the first quarter of 2020 to a peak of $5,440 million in June 2021. Following this peak, net sales fluctuated with a slight downward tendency towards the end of 2021 and early 2022 but then showed recovery by the first quarter of 2023, reaching $5,273 million. Overall, net sales exhibited growth with periods of variability.
- Gross Margin
- Gross margin showed variability with an initial moderate increase from $1,122 million in March 2020 to a peak of $1,619 million in June 2021. Following this peak, gross margin values declined and fluctuated throughout 2022 and early 2023, with the lowest value observed at $1,247 million in December 2022. By March 2023, gross margin had improved slightly to $1,378 million, yet it remained below the mid-2021 peak.
- Gross Profit Margin Percentage
- The gross profit margin percentage data are only available from March 31, 2020, onward. Throughout this period, it demonstrated a consistent decline. Starting around 29.27% in March 2020, it gradually decreased each quarter, reaching 26.37% by March 2023. This suggests a reduction in profitability at the gross level, despite fluctuations and occasional growth in net sales and gross margin in absolute dollar terms.
In summary, the company experienced growth in net sales and gross margin up to mid-2021, followed by a decline and some recovery attempts through subsequent quarters. The gross profit margin percentage, however, steadily decreased throughout the entire period, indicating that cost pressures or pricing challenges might have eroded profitability margins despite the nominal growth in sales and gross profit figures.
Operating Profit Margin
Carrier Global Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Operating profit | 555) | 433) | 1,526) | 819) | 1,737) | 463) | 828) | 783) | 571) | 1,245) | 1,081) | 442) | 315) | |||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | 4,594) | 5,002) | 3,972) | 3,888) | |||||
| Profitability Ratio | ||||||||||||||||||
| Operating profit margin1 | 15.84% | 22.11% | 22.23% | 18.91% | 18.53% | 12.83% | 17.07% | 18.65% | 18.28% | 17.66% | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||
| Boeing Co. | -3.58% | -5.33% | -11.99% | -6.98% | -6.53% | -4.66% | -10.80% | -12.18% | -20.36% | -21.95% | — | — | — | |||||
| Caterpillar Inc. | 14.94% | 13.97% | 14.56% | 13.81% | 13.87% | 14.27% | 14.56% | 13.82% | 12.32% | 11.67% | — | — | — | |||||
| Eaton Corp. plc | 14.85% | 14.55% | 13.90% | 16.33% | 15.97% | 15.69% | 15.50% | 12.54% | 10.81% | 11.45% | — | — | — | |||||
| GE Aerospace | 7.40% | 6.05% | 7.05% | 8.12% | 7.31% | 8.58% | 7.86% | 6.82% | 4.72% | 5.49% | — | — | — | |||||
| Honeywell International Inc. | 19.05% | 18.12% | 17.55% | 17.31% | 17.37% | 18.03% | 18.36% | 17.95% | 16.90% | 17.45% | — | — | — | |||||
| Lockheed Martin Corp. | 12.78% | 12.65% | 13.15% | 13.47% | 13.50% | 13.61% | 13.50% | 13.19% | 13.19% | 13.22% | — | — | — | |||||
| RTX Corp. | 8.73% | 8.07% | 7.93% | 7.81% | 7.75% | 7.70% | 5.93% | 4.61% | -3.59% | -3.34% | — | — | — | |||||
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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating profitQ1 2023
+ Operating profitQ4 2022
+ Operating profitQ3 2022
+ Operating profitQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (555 + 433 + 1,526 + 819)
÷ (5,273 + 5,105 + 5,451 + 5,211)
= 15.84%
2 Click competitor name to see calculations.
- Operating Profit
- The operating profit exhibits significant volatility across the analyzed quarters. Initial values show a moderate level in early 2020, with a noticeable peak in the third and fourth quarters of 2020, reaching over one billion US dollars. This is followed by a marked decline through 2021, bottoming to less than 500 million towards the end of the year. In 2022, the profit recovers strongly in the first and third quarters, surpassing previous peaks, but experiences a sharp decrease in the final quarter. The first quarter of 2023 shows a modest increase compared to the previous quarter but remains significantly below earlier peaks.
- Net Sales
- Net sales maintain a relatively stable upward trend over the observed periods, with fluctuations that align somewhat with operating profit movements. Throughout 2020, sales gradually increase from approximately 3.9 billion to over 5 billion dollars. In 2021, sales continue to rise with a peak in the second quarter, followed by a slight decrease but generally remain above 5 billion through the end of the year. Into 2022 and early 2023, sales values show moderate variability but maintain a consistent range between roughly 4.6 and 5.5 billion dollars, indicating stable revenue generation despite operational profit fluctuations.
- Operating Profit Margin
- The operating profit margin data is incomplete for early 2020 but becomes available from the fourth quarter of 2020 onward. Margins start around 17.7% and gradually increase to just above 18% in the first three quarters of 2021, before dipping to approximately 12.8% in the last quarter. In 2022, margins improve significantly, reaching a peak of over 22% in the third quarter, before falling again toward the end of the year. The first quarter of 2023 records a margin of nearly 16%, which is a decrease from the prior quarter but comparable to mid-2021 levels. This pattern reflects a fluctuating profitability efficiency relative to sales, with notable improvement during mid-2022 followed by variability thereafter.
Net Profit Margin
Carrier Global Corp., net profit margin 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income attributable to common shareowners | 373) | 270) | 1,312) | 573) | 1,379) | 324) | 469) | 487) | 384) | 884) | 741) | 261) | 96) | |||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | 4,594) | 5,002) | 3,972) | 3,888) | |||||
| Profitability Ratio | ||||||||||||||||||
| Net profit margin1 | 12.02% | 17.31% | 17.55% | 13.50% | 12.93% | 8.07% | 11.08% | 12.65% | 12.43% | 11.35% | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||
| Boeing Co. | -5.86% | -7.41% | -13.75% | -8.69% | -8.00% | -6.75% | -13.50% | -14.30% | -20.87% | -20.42% | — | — | — | |||||
| Caterpillar Inc. | 12.10% | 11.85% | 13.70% | 13.19% | 13.02% | 13.47% | 11.28% | 10.17% | 8.53% | 7.68% | — | — | — | |||||
| Eaton Corp. plc | 12.00% | 11.86% | 11.36% | 11.70% | 11.21% | 10.92% | 10.60% | 9.86% | 8.05% | 7.90% | — | — | — | |||||
| GE Aerospace | 12.35% | 0.31% | -8.10% | -6.18% | -6.70% | -9.17% | -0.06% | -3.39% | -4.68% | 7.81% | — | — | — | |||||
| Honeywell International Inc. | 14.54% | 14.00% | 15.38% | 14.74% | 15.30% | 16.11% | 15.80% | 14.65% | 14.17% | 14.64% | — | — | — | |||||
| Lockheed Martin Corp. | 8.60% | 8.69% | 9.07% | 7.33% | 9.45% | 9.42% | 9.13% | 10.69% | 10.53% | 10.45% | — | — | — | |||||
| RTX Corp. | 8.08% | 7.75% | 6.76% | 6.84% | 6.47% | 6.00% | 5.20% | 3.51% | -4.44% | -6.22% | — | — | — | |||||
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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net income attributable to common shareownersQ1 2023
+ Net income attributable to common shareownersQ4 2022
+ Net income attributable to common shareownersQ3 2022
+ Net income attributable to common shareownersQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × (373 + 270 + 1,312 + 573)
÷ (5,273 + 5,105 + 5,451 + 5,211)
= 12.02%
2 Click competitor name to see calculations.
- Net Income Attributable to Common Shareowners
- The net income shows considerable volatility throughout the observed periods. Starting at a low of 96 million USD in March 2020, it increased sharply to a peak of 884 million USD by December 2020. This was followed by a decline in the first quarter of 2021, with fluctuations thereafter. Notably, there were two significant spikes, reaching 1,379 million USD in March 2022 and 1,312 million USD in September 2022, interspersed with drops to as low as 270 million USD in December 2022. The figure in March 2023 decreases to 373 million USD, indicating a period of instability in quarterly net income levels.
- Net Sales
- Net sales display a generally increasing trend from March 2020 through June 2021, rising from 3,888 million USD to 5,440 million USD. This increase is followed by some fluctuations, with values oscillating between approximately 4,600 million USD and 5,451 million USD from the third quarter of 2021 through early 2023. The highest sales figure observed is 5,451 million USD in September 2022. The data suggests a relatively stable sales performance with moderate variations after mid-2021.
- Net Profit Margin
- The net profit margin, available from the fourth quarter of 2020 onward, shows a generally positive and upward trend with some fluctuations. Starting at 11.35% in December 2020, it increased gradually to a peak of 17.55% by September 2022. Margins then slightly decreased to 17.31% in December 2022 and further to 12.02% in March 2023. This indicator of profitability per sales dollar suggests overall improvement in operational efficiency and profitability through most of the periods analyzed, despite recent declines.
- Summary of Trends
- The data reveals a company experiencing growth in net sales until mid-2021, after which sales levels fluctuate without a clear upward trajectory. Net income exhibits marked volatility, with several significant peaks and troughs over the quarters, indicating inconsistent profit generation relative to sales. The net profit margin shows a positive trend for much of the period but dips in the most recent quarter, possibly reflecting pressures on profitability or increased costs. Overall, while sales volumes have generally increased and profit margins improved, the variability of net income suggests underlying operational or market challenges affecting sustained profitability.
Return on Equity (ROE)
Carrier Global Corp., ROE 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income attributable to common shareowners | 373) | 270) | 1,312) | 573) | 1,379) | 324) | 469) | 487) | 384) | 884) | 741) | 261) | 96) | |||||
| Equity attributable to common shareowners | 8,134) | 7,758) | 7,152) | 6,696) | 7,101) | 6,767) | 6,900) | 6,756) | 6,489) | 6,252) | 5,096) | 4,028) | 2,697) | |||||
| Profitability Ratio | ||||||||||||||||||
| ROE1 | 31.08% | 45.55% | 50.17% | 40.99% | 37.45% | 24.59% | 32.23% | 36.94% | 34.98% | 31.70% | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 39.18% | 42.25% | 47.28% | 42.96% | 38.07% | 39.37% | 30.90% | 26.09% | 20.73% | 19.56% | — | — | — | |||||
| Eaton Corp. plc | 14.72% | 14.45% | 14.26% | 14.12% | 13.35% | 13.06% | 12.95% | 12.23% | 9.54% | 9.44% | — | — | — | |||||
| GE Aerospace | 27.72% | 0.62% | -18.56% | -12.75% | -12.20% | -16.17% | -0.11% | -7.29% | -9.82% | 16.04% | — | — | — | |||||
| Honeywell International Inc. | 30.89% | 29.74% | 30.36% | 28.96% | 28.58% | 29.85% | 30.67% | 27.73% | 25.71% | 27.23% | — | — | — | |||||
| Lockheed Martin Corp. | 58.97% | 61.86% | 49.05% | 41.16% | 62.10% | 57.62% | 62.90% | 109.51% | 110.16% | 113.60% | — | — | — | |||||
| RTX Corp. | 7.61% | 7.16% | 6.36% | 6.34% | 5.79% | 5.29% | 4.65% | 3.07% | -3.74% | -4.88% | — | — | — | |||||
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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2023 Calculation
ROE = 100
× (Net income attributable to common shareownersQ1 2023
+ Net income attributable to common shareownersQ4 2022
+ Net income attributable to common shareownersQ3 2022
+ Net income attributable to common shareownersQ2 2022)
÷ Equity attributable to common shareowners
= 100 × (373 + 270 + 1,312 + 573)
÷ 8,134 = 31.08%
2 Click competitor name to see calculations.
The financial data reveals several notable trends with respect to profitability and equity over the observed periods.
- Net Income Attributable to Common Shareowners
- The net income demonstrates fluctuations throughout the quarters. There was a significant rise from $96 million in March 2020 to $884 million by December 2020. Following this peak, the income experienced volatility in 2021, peaking again in March 2022 at $1,379 million before declining sharply to $270 million by December 2022. In the most recent quarter, March 2023, net income recovered somewhat to $373 million, indicating ongoing variability in profitability.
- Equity Attributable to Common Shareowners
- Equity showed consistent growth over time, increasing steadily from $2,697 million in March 2020 to $8,134 million by March 2023. Despite minor declines in some quarters (notably in June 2022), the overall trend indicates strengthening shareholder equity. This suggests a solid capital base and potential retained earnings accumulation across the periods.
- Return on Equity (ROE)
- Return on equity data is available from March 2021 onward and shows generally strong profitability relative to equity. ROE started at 31.7%, increased to a peak of 50.17% in December 2022, indicating highly efficient use of equity during that quarter. The most recent figure, 31.08% in March 2023, remains robust but shows a decrease from the prior high. These fluctuations correlate with the variability observed in net income.
In summary, the company experienced strong but volatile net income, with equity steadily increasing over the examined periods. The ROE reflects effective capital utilization, though it also varies in line with earnings fluctuations. The data suggests a capacity for profitability amid external or operational challenges impacting quarterly income levels.
Return on Assets (ROA)
Carrier Global Corp., ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income attributable to common shareowners | 373) | 270) | 1,312) | 573) | 1,379) | 324) | 469) | 487) | 384) | 884) | 741) | 261) | 96) | |||||
| Total assets | 26,411) | 26,086) | 25,350) | 23,662) | 24,193) | 26,172) | 25,788) | 25,738) | 24,868) | 25,093) | 25,728) | 24,176) | 22,001) | |||||
| Profitability Ratio | ||||||||||||||||||
| ROA1 | 9.57% | 13.55% | 14.15% | 11.60% | 10.99% | 6.36% | 8.62% | 9.70% | 9.13% | 7.90% | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||
| Boeing Co. | -3.03% | -3.60% | -6.14% | -3.90% | -3.60% | -3.03% | -5.77% | -5.92% | -7.85% | -7.80% | — | — | — | |||||
| Caterpillar Inc. | 8.50% | 8.18% | 9.11% | 8.33% | 7.90% | 7.84% | 6.37% | 5.37% | 4.26% | 3.83% | — | — | — | |||||
| Eaton Corp. plc | 7.23% | 7.03% | 6.67% | 6.58% | 6.30% | 6.30% | 6.06% | 5.12% | 4.20% | 4.43% | — | — | — | |||||
| GE Aerospace | 5.33% | 0.12% | -3.23% | -2.38% | -2.48% | -3.28% | -0.02% | -1.03% | -1.34% | 2.25% | — | — | — | |||||
| Honeywell International Inc. | 8.73% | 7.97% | 8.92% | 8.16% | 8.29% | 8.60% | 8.53% | 7.78% | 7.28% | 7.40% | — | — | — | |||||
| Lockheed Martin Corp. | 10.41% | 10.84% | 11.28% | 9.09% | 12.06% | 12.41% | 11.69% | 13.71% | 13.52% | 13.47% | — | — | — | |||||
| RTX Corp. | 3.43% | 3.27% | 2.82% | 2.81% | 2.63% | 2.39% | 2.09% | 1.37% | -1.67% | -2.17% | — | — | — | |||||
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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2023 Calculation
ROA = 100
× (Net income attributable to common shareownersQ1 2023
+ Net income attributable to common shareownersQ4 2022
+ Net income attributable to common shareownersQ3 2022
+ Net income attributable to common shareownersQ2 2022)
÷ Total assets
= 100 × (373 + 270 + 1,312 + 573)
÷ 26,411 = 9.57%
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends in net income, total assets, and return on assets (ROA) over the observed quarters.
- Net income attributable to common shareowners
- Net income exhibits significant volatility throughout the reported periods. Starting from a relatively modest $96 million in March 2020, it surged sharply to $884 million by December 2020. Following this peak, the net income experienced fluctuations with decreases and rebounds, notably dropping to $324 million in December 2021 before rising again to a peak of $1,379 million in March 2022. The subsequent quarters showcase variability, with net income declining to $270 million by March 2023, indicating oscillating profitability levels during the timeframe.
- Total assets
- The total assets demonstrated a gradual upward trend overall, beginning at $22,001 million in March 2020 and increasing to $26,411 million by March 2023. Although some quarters reflected slight declines, such as the dip to $23,662 million in June 2022, the general trajectory is an expansion in asset base. This suggests a steady accumulation of resources or investments over the period despite some short-term contractions.
- Return on Assets (ROA)
- ROA values, available from March 2021 onwards, indicate an improving efficiency in asset utilization initially, rising from 7.9% to a high of 14.15% in December 2022. This upward trend reflects enhanced profitability relative to the asset base during that time. However, in the last reported quarter (March 2023), ROA declined to 9.57%, signaling a reduction in asset profitability after the peak. The pattern suggests that while the company was able to optimize asset use effectively in 2021 and 2022, challenges impacted the efficiency in early 2023.
In summary, the company experienced strong but volatile earnings performance with significant peaks and troughs in net income. The total assets expanded steadily, supporting operational capacity despite some intermittent decreases. Asset efficiency improved markedly through 2021 and 2022, with a subsequent decrease in early 2023, indicating potential pressures on profitability relative to the asset base during the latest period.