Analysis of Short-term (Operating) 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.
Short-term Activity Ratios (Summary)
Carrier Global Corp., short-term (operating) 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), 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).
- Inventory Turnover
- The inventory turnover ratio shows a general declining trend from 7.58 in March 2021 to 5.53 in March 2023. After peaking slightly at 7.43 in March 2022, it steadily decreased, indicating that inventory is being sold less frequently over the periods analyzed.
- Receivables Turnover
- Receivables turnover increased from 6.28 in March 2021 to a peak of 8.58 in March 2022, suggesting enhanced efficiency in collecting receivables. However, since June 2022, it declined gradually to 6.94 by March 2023, implying a slight slowdown in collections.
- Payables Turnover
- Payables turnover fluctuated between 5.28 and 6.57, with no clear directional trend. Starting at 6.38 in March 2021, it decreased to 5.28 in March 2023, indicating that the company is taking longer to pay its suppliers over time.
- Working Capital Turnover
- The working capital turnover ratio exhibited variability, starting at 5.11 in March 2021, peaking at 6.27 in September 2021, and then stabilizing around 5.3 to 5.5 in the subsequent periods. This suggests relative stability in the efficiency of using working capital to generate sales, after some fluctuations.
- Average Inventory Processing Period
- The average inventory processing period increased consistently from 48 days in March 2021 to 66 days in March 2023. This upward trend corresponds with the decline in inventory turnover, reflecting slower inventory movement.
- Average Receivable Collection Period
- The average receivable collection period decreased from 58 days in March 2021 to a low of 43 days in March 2022, indicating improved collection efficiency. However, it rose again to 53 days by March 2023, aligned with the declining receivables turnover in the latter periods.
- Operating Cycle
- The operating cycle shortened from 106 days in March 2021 to 92 days in March 2022, followed by an increase to 119 days in March 2023. This pattern shows initial improvement in the speed of converting inventory and receivables into cash, but lengthening afterward, suggesting some operational inefficiencies or delays.
- Average Payables Payment Period
- The average payables payment period generally increased from 57 days in March 2021 to 69 days in March 2023. This indicates the company is extending the time it takes to pay its suppliers, which might be a strategy to manage cash flow, but could also affect supplier relationships.
- Cash Conversion Cycle
- The cash conversion cycle decreased from 49 days in March 2021 to 34 days in March 2022, reflecting improved liquidity and operational efficiency. However, after March 2022, it rose again to 50 days by March 2023, indicating a return to a longer duration to convert investments in resources into cash inflows.
Turnover Ratios
Average No. Days
Inventory Turnover
Carrier Global Corp., inventory 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Cost of products and services sold | 3,895) | 3,858) | 3,974) | 3,764) | 3,361) | 3,767) | 3,740) | 3,821) | 3,305) | 3,309) | 3,441) | 2,831) | 2,766) | |||||
| Inventories, net | 2,803) | 2,640) | 2,664) | 2,350) | 2,358) | 1,970) | 1,926) | 1,885) | 1,854) | 1,629) | 1,581) | 1,639) | 1,556) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Inventory turnover1 | 5.53 | 5.67 | 5.58 | 6.23 | 6.23 | 7.43 | 7.36 | 7.36 | 6.95 | 7.58 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||
| Boeing Co. | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | 0.75 | 0.77 | 0.76 | 0.74 | 0.78 | — | — | — | |||||
| Caterpillar Inc. | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | — | — | — | |||||
| Eaton Corp. plc | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | — | — | — | |||||
| GE Aerospace | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | 3.40 | 3.21 | 3.28 | 3.46 | 3.80 | — | — | — | |||||
| Honeywell International Inc. | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | 4.55 | 4.72 | 4.88 | 4.85 | 4.94 | — | — | — | |||||
| Lockheed Martin Corp. | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | — | — | — | |||||
| RTX Corp. | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | 5.65 | 5.57 | 5.49 | 5.48 | 5.11 | — | — | — | |||||
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
Inventory turnover
= (Cost of products and services soldQ1 2023
+ Cost of products and services soldQ4 2022
+ Cost of products and services soldQ3 2022
+ Cost of products and services soldQ2 2022)
÷ Inventories, net
= (3,895 + 3,858 + 3,974 + 3,764)
÷ 2,803 = 5.53
2 Click competitor name to see calculations.
The cost of products and services sold experienced fluctuations over the observed periods. Beginning at $2,766 million in March 2020, it showed a general upward trajectory with some variability, peaking at around $3,974 million in September 2022 before slightly decreasing to $3,895 million in March 2023. This indicates an overall increase in costs associated with producing goods and services over the three-year period, suggesting either increased production volume, higher input prices, or changes in product mix.
Inventories, net, exhibited a consistent increase throughout the periods. Starting at $1,556 million in March 2020, inventories rose steadily to reach $2,803 million by March 2023. This upward trend in inventory levels may reflect strategic stockpiling, growth in activity, or slower inventory turnover, possibly due to supply chain considerations or demand fluctuations.
The inventory turnover ratio, available from December 2020 onward, presents a declining pattern. Initially reported at 7.58, it gradually decreased to 5.53 by March 2023. A declining inventory turnover ratio suggests that inventory is being sold and replaced less frequently, which may imply slower sales, overstocking, or less efficient inventory management over time.
- Cost of products and services sold
- Demonstrates growth with peaks and minor declines, increasing from $2.766 billion to nearly $3.9 billion, hinting at rising operational scale or cost pressures.
- Inventories, net
- Steadily increased from $1.556 billion to $2.803 billion, indicating accumulation of inventory which could be due to higher demand anticipation or slower sales cycles.
- Inventory turnover ratio
- Declined from 7.58 to 5.53, implying slower movement of inventory which could affect liquidity and working capital efficiency negatively.
Receivables Turnover
Carrier Global Corp., receivables turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net sales | 5,273) | 5,105) | 5,451) | 5,211) | 4,654) | 5,133) | 5,341) | 5,440) | 4,699) | 4,594) | 5,002) | 3,972) | 3,888) | |||||
| Accounts receivable, net | 3,032) | 2,833) | 3,003) | 2,823) | 2,599) | 2,403) | 2,669) | 3,128) | 2,831) | 2,781) | 2,872) | 2,665) | 2,674) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Receivables turnover1 | 6.94 | 7.21 | 6.81 | 7.20 | 7.91 | 8.58 | 7.52 | 6.31 | 6.45 | 6.28 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||
| Boeing Co. | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | 23.58 | 27.95 | 24.76 | 23.97 | 29.75 | — | — | — | |||||
| Caterpillar Inc. | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | — | — | — | |||||
| Eaton Corp. plc | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | 5.95 | 5.75 | 5.72 | 5.79 | 6.15 | — | — | — | |||||
| GE Aerospace | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | 4.55 | 4.83 | 4.74 | 4.59 | 4.37 | — | — | — | |||||
| Honeywell International Inc. | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | 5.04 | 4.78 | 4.89 | 4.89 | 4.78 | — | — | — | |||||
| Lockheed Martin Corp. | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | 34.15 | 29.27 | 25.59 | 29.81 | 33.06 | — | — | — | |||||
| RTX Corp. | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | — | — | — | |||||
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
Receivables turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Accounts receivable, net
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 3,032 = 6.94
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated an overall upward trend from March 31, 2020, through March 31, 2023, despite some quarterly fluctuations. Beginning at approximately $3.9 billion in the first quarter of 2020, sales increased significantly by the third quarter of 2020, reaching around $5 billion. Afterward, a period of volatility ensued, with net sales slightly declining toward the end of 2020 but generally increasing again during 2021, peaking near $5.4 billion in the second and third quarters. In 2022, net sales exhibited some variability, with values ranging between approximately $4.6 billion and $5.5 billion. The first quarter of 2023 maintained a level above $5.2 billion, indicating relative stability compared to the prior year.
- Accounts Receivable, Net
- Accounts receivable, net, fluctuated over the observed periods with no clear linear trend. Starting at around $2.7 billion in the first quarter of 2020, the balance remained relatively stable through the first half of 2020 but increased in the second quarter of 2021 to approximately $3.1 billion. Subsequently, a decline followed for the remainder of 2021, reaching a low near $2.4 billion by the end of that year. In 2022, accounts receivable climbed again, peaking at about $3 billion in the third quarter, before decreasing slightly in the final quarter. The first quarter of 2023 shows a renewed increase to approximately $3 billion. These fluctuations suggest variability in credit sales or collection efficiency over time.
- Receivables Turnover Ratio
- The receivables turnover ratio, available only from March 31, 2020, onward, demonstrates an improving trend through 2021, indicating increasingly efficient collection processes or faster turnover of receivables. The ratio rose from 6.28 in Q1 2020 to a peak of 8.58 in Q3 2021, signifying that accounts receivable were converted into cash more quickly during this period. After the peak, the turnover ratio gradually decreased, leveling off around 6.94 in Q1 2023, which still compares favorably to earlier periods but indicates some reduction in collection efficiency or slower turnover since the high point. This pattern aligns with the fluctuations observed in accounts receivable balances.
Payables Turnover
Carrier Global Corp., payables turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Cost of products and services sold | 3,895) | 3,858) | 3,974) | 3,764) | 3,361) | 3,767) | 3,740) | 3,821) | 3,305) | 3,309) | 3,441) | 2,831) | 2,766) | |||||
| Accounts payable | 2,926) | 2,833) | 2,817) | 2,403) | 2,519) | 2,334) | 2,158) | 2,362) | 2,175) | 1,936) | 2,019) | 1,765) | 1,776) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Payables turnover1 | 5.29 | 5.28 | 5.28 | 6.09 | 5.83 | 6.27 | 6.57 | 5.87 | 5.92 | 6.38 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||
| Boeing Co. | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | 6.40 | 6.20 | 5.45 | 4.90 | 4.94 | — | — | — | |||||
| Caterpillar Inc. | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | — | — | — | |||||
| Eaton Corp. plc | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | — | — | — | |||||
| GE Aerospace | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | 3.32 | 3.33 | 3.35 | 3.56 | 3.67 | — | — | — | |||||
| Honeywell International Inc. | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | 3.61 | 3.83 | 3.76 | 3.86 | 3.86 | — | — | — | |||||
| Lockheed Martin Corp. | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | 74.34 | 37.83 | 36.15 | 30.31 | 64.48 | — | — | — | |||||
| RTX Corp. | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | 5.93 | 6.06 | 6.52 | 5.67 | 5.56 | — | — | — | |||||
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
Payables turnover
= (Cost of products and services soldQ1 2023
+ Cost of products and services soldQ4 2022
+ Cost of products and services soldQ3 2022
+ Cost of products and services soldQ2 2022)
÷ Accounts payable
= (3,895 + 3,858 + 3,974 + 3,764)
÷ 2,926 = 5.29
2 Click competitor name to see calculations.
- Cost of products and services sold
- The cost of products and services sold demonstrated a generally upward trend over the observed periods. Beginning at $2,766 million in March 2020, the cost increased through most quarters, peaking at $3,974 million in September 2022. There was a notable increase between March 2021 and June 2021, where the cost rose from approximately $3,305 million to $3,821 million. Following the peak in September 2022, the cost slightly declined but remained elevated, stabilizing around $3,858 million to $3,895 million by March 2023. This pattern indicates a sustained rise in product and service costs over the three-year timeframe.
- Accounts payable
- Accounts payable values consistently increased across the quarters, starting from $1,776 million in March 2020 to $2,926 million in March 2023. The growth shows some periods of more rapid increase, such as from December 2021 ($2,334 million) to September 2022 ($2,817 million), followed by a stabilization at slightly above $2,900 million through the first quarter of 2023. The steady rise in accounts payable suggests an expanding scale of operations or extended credit terms from suppliers over time.
- Payables turnover ratio
- The payables turnover ratio, available from December 2020 onward, exhibited fluctuations within a narrow range. It started at 6.38 in December 2020 and gradually decreased to 5.29 by March 2023. The ratio briefly dipped below 5.50 between March and June 2022 before slightly recovering but remained lower compared to the initial ratio. The decreasing trend indicates a slower rate of paying off suppliers relative to purchases over time, which could reflect changes in payment policies or operational cash flow management.
Working Capital Turnover
Carrier Global Corp., working capital turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Current assets | 10,158) | 9,879) | 9,740) | 9,276) | 9,602) | 11,407) | 11,300) | 8,754) | 8,328) | 8,524) | 9,334) | 8,053) | 5,968) | |||||
| Less: Current liabilities | 5,958) | 6,032) | 6,013) | 5,546) | 5,531) | 6,627) | 6,068) | 5,604) | 5,138) | 5,110) | 5,182) | 4,789) | 4,451) | |||||
| Working capital | 4,200) | 3,847) | 3,727) | 3,730) | 4,071) | 4,780) | 5,232) | 3,150) | 3,190) | 3,414) | 4,152) | 3,264) | 1,517) | |||||
| 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) | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Working capital turnover1 | 5.01 | 5.31 | 5.49 | 5.45 | 5.05 | 4.31 | 3.84 | 6.27 | 5.73 | 5.11 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||
| Boeing Co. | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | 2.34 | 2.02 | 2.00 | 1.88 | 1.69 | — | — | — | |||||
| Caterpillar Inc. | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | 3.54 | 2.87 | 2.80 | 2.52 | 2.84 | — | — | — | |||||
| Eaton Corp. plc | 7.01 | 8.70 | 10.69 | — | — | 65.65 | 12.41 | 21.65 | 5.34 | 5.42 | — | — | — | |||||
| GE Aerospace | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | 4.94 | 1.57 | 1.57 | 1.27 | 2.26 | — | — | — | |||||
| Honeywell International Inc. | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | 5.86 | 5.94 | 4.52 | 4.27 | 3.64 | — | — | — | |||||
| Lockheed Martin Corp. | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | 11.52 | 10.48 | 12.30 | 11.93 | 12.01 | — | — | — | |||||
| RTX Corp. | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | — | — | — | |||||
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
Working capital turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Working capital
= (5,273 + 5,105 + 5,451 + 5,211)
÷ 4,200 = 5.01
2 Click competitor name to see calculations.
- Working Capital
- The working capital shows an overall increasing trend from March 2020 to March 2023. It started at 1,517 million USD in March 2020, rising notably to 4,152 million USD by September 2020. After some fluctuations, it peaked again at 5,232 million USD in September 2021 before declining somewhat through 2022, with values stabilizing around the 3,700 to 4,200 million USD range by early 2023.
- Net Sales
- Net sales demonstrated steady growth with some variability. Starting at 3,888 million USD in March 2020, sales reached a high of 5,451 million USD in September 2022. Despite occasional decreases, such as the dip observed in the fourth quarters of 2020 and 2021, the general trend is upward with sales close to 5,273 million USD as of March 2023.
- Working Capital Turnover
- Working capital turnover shows a trend of increasing efficiency through 2021, rising from 5.11 in March 2021 to 6.27 in September 2021, reflecting improved utilization of working capital to generate sales. However, turnover dropped to 3.84 by December 2021, indicating decreased efficiency during that period. Subsequently, turnover recovered and stabilized around the 5.0 to 5.5 range from early 2022 through the first quarter of 2023.
- Insights
- The increased working capital alongside generally rising net sales indicates growth, with working capital management becoming more efficient in early 2021. The temporary dip in turnover in late 2021 suggests some challenges in converting working capital into revenue during that quarter. Nevertheless, subsequent recovery of turnover ratios suggests adjustments or improvements were made. Overall, the company demonstrates growth in sales and capability to maintain stable working capital turnover in recent periods.
Average Inventory Processing Period
Carrier Global Corp., average inventory processing period 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 | ||||||||||||||||||
| Inventory turnover | 5.53 | 5.67 | 5.58 | 6.23 | 6.23 | 7.43 | 7.36 | 7.36 | 6.95 | 7.58 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average inventory processing period1 | 66 | 64 | 65 | 59 | 59 | 49 | 50 | 50 | 53 | 48 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||
| Boeing Co. | 438 | 452 | 468 | 494 | 493 | 486 | 475 | 478 | 496 | 467 | — | — | — | |||||
| Caterpillar Inc. | 154 | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | — | — | — | |||||
| Eaton Corp. plc | 93 | 90 | 92 | 94 | 90 | 82 | 77 | 75 | 71 | 62 | — | — | — | |||||
| GE Aerospace | 110 | 114 | 118 | 120 | 112 | 107 | 114 | 111 | 105 | 96 | — | — | — | |||||
| Honeywell International Inc. | 94 | 90 | 89 | 90 | 87 | 80 | 77 | 75 | 75 | 74 | — | — | — | |||||
| Lockheed Martin Corp. | 22 | 20 | 20 | 23 | 20 | 19 | 18 | 20 | 21 | 23 | — | — | — | |||||
| RTX Corp. | 76 | 73 | 73 | 71 | 69 | 65 | 65 | 66 | 67 | 71 | — | — | — | |||||
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.53 = 66
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio shows a fluctuating trend over the observed periods. Starting from 7.58 in March 2021, it slightly decreased to 6.95 in June 2021, then increased to 7.36 in September and December 2021. In March 2022, the ratio remained relatively stable at 7.43 before experiencing a notable decline through the following quarters, reaching 5.53 by March 2023. This downward trend in inventory turnover towards the end of the period indicates that the company is turning over its inventory less frequently than before.
- Average Inventory Processing Period
- The average inventory processing period shows an inverse pattern to inventory turnover, as expected. Starting at 48 days in March 2021, the period increased to 53 days in June 2021, then slightly decreased to 50 days in September and December 2021. The processing period stabilized around 49 days in March 2022 but then progressively lengthened through subsequent quarters, reaching 66 days by March 2023. This extension in the inventory processing period suggests that inventory is being held longer before sale or use.
- Analysis Summary
- Overall, the data reflects a trend of decreasing inventory efficiency over the examined quarters. The reduction in inventory turnover ratio coupled with the increase in the average inventory processing period indicates that the company is managing its inventory less effectively, with goods remaining in stock for longer durations without corresponding sales increases. This could potentially impact working capital and operational liquidity if the trend continues.
Average Receivable Collection Period
Carrier Global Corp., average receivable collection period 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 | ||||||||||||||||||
| Receivables turnover | 6.94 | 7.21 | 6.81 | 7.20 | 7.91 | 8.58 | 7.52 | 6.31 | 6.45 | 6.28 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average receivable collection period1 | 53 | 51 | 54 | 51 | 46 | 43 | 49 | 58 | 57 | 58 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||
| Boeing Co. | 15 | 14 | 16 | 18 | 14 | 15 | 13 | 15 | 15 | 12 | — | — | — | |||||
| Caterpillar Inc. | 57 | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | — | — | — | |||||
| Eaton Corp. plc | 72 | 72 | 69 | 71 | 68 | 61 | 63 | 64 | 63 | 59 | — | — | — | |||||
| GE Aerospace | 73 | 89 | 87 | 83 | 82 | 80 | 76 | 77 | 80 | 83 | — | — | — | |||||
| Honeywell International Inc. | 80 | 77 | 77 | 82 | 76 | 72 | 76 | 75 | 75 | 76 | — | — | — | |||||
| Lockheed Martin Corp. | 14 | 14 | 14 | 19 | 14 | 11 | 12 | 14 | 12 | 11 | — | — | — | |||||
| RTX Corp. | 54 | 50 | 51 | 58 | 51 | 55 | 55 | 52 | 61 | 60 | — | — | — | |||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.94 = 53
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio, starting from March 31, 2020, shows an initial increase through the year 2021. It progressed from 6.28 in March 2021 to a peak of 8.58 in March 2022, indicating an improvement in the efficiency with which the company collects its receivables during this period. After this peak, the ratio declines gradually across the subsequent quarters, falling to 6.94 by March 31, 2023, suggesting a slight decrease in collection efficiency entering 2023.
- Average Receivable Collection Period
- The average receivable collection period displays an inverse trend to the receivables turnover, starting at 58 days in March 2021 and improving to 43 days by March 2022. This decline represents faster collection of receivables over this span, reflecting enhanced cash flow management. However, following the March 2022 low, the collection period lengthens again, increasing to 53 days by March 31, 2023, which implies some deterioration in the speed of receivable collections later, consistent with the declining turnover ratio.
- Overall Trend Analysis
- From the available data, the company experienced an improving trend in receivable management through 2021 into early 2022, characterized by higher receivables turnover and shorter collection periods. This period likely reflects stronger operational performance or more stringent credit control. In contrast, the trends reverse in the later period, with turnover ratios declining and collection periods extending, suggesting challenges in sustaining earlier collection efficiencies or potentially changing credit terms or market conditions affecting receivables.
Operating Cycle
Carrier Global Corp., operating cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||
| Average inventory processing period | 66 | 64 | 65 | 59 | 59 | 49 | 50 | 50 | 53 | 48 | — | — | — | |||||
| Average receivable collection period | 53 | 51 | 54 | 51 | 46 | 43 | 49 | 58 | 57 | 58 | — | — | — | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Operating cycle1 | 119 | 115 | 119 | 110 | 105 | 92 | 99 | 108 | 110 | 106 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||
| Boeing Co. | 453 | 466 | 484 | 512 | 507 | 501 | 488 | 493 | 511 | 479 | — | — | — | |||||
| Caterpillar Inc. | 211 | 201 | 210 | 212 | 215 | 208 | 211 | 212 | 221 | 211 | — | — | — | |||||
| Eaton Corp. plc | 165 | 162 | 161 | 165 | 158 | 143 | 140 | 139 | 134 | 121 | — | — | — | |||||
| GE Aerospace | 183 | 203 | 205 | 203 | 194 | 187 | 190 | 188 | 185 | 179 | — | — | — | |||||
| Honeywell International Inc. | 174 | 167 | 166 | 172 | 163 | 152 | 153 | 150 | 150 | 150 | — | — | — | |||||
| Lockheed Martin Corp. | 36 | 34 | 34 | 42 | 34 | 30 | 30 | 34 | 33 | 34 | — | — | — | |||||
| RTX Corp. | 130 | 123 | 124 | 129 | 120 | 120 | 120 | 118 | 128 | 131 | — | — | — | |||||
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 cycle = Average inventory processing period + Average receivable collection period
= 66 + 53 = 119
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period showed an increasing trend over the reported periods. Starting at 48 days in March 31, 2021, it rose gradually and reached 66 days by the March 31, 2023 period. Notably, there was a marked increase from 59 days in June 30, 2022 to 65 days in December 31, 2022, stabilizing slightly around 64 to 66 days towards the end of the period. This suggests a lengthening in the time inventory remains in the system before processing.
- Average Receivable Collection Period
- The average receivable collection period exhibited some fluctuations but generally remained within a range of 43 to 58 days. It began at 58 days in March 31, 2021, decreased to a low of 43 days by March 31, 2022, before increasing again to around 51 to 54 days in subsequent quarters, ultimately rising slightly to 53 days by March 31, 2023. This indicates some variability in the collection efficiency but no decisive sustained trend of improvement or deterioration.
- Operating Cycle
- The operating cycle showed notable variation over the periods, moving from 106 days in March 31, 2021 to a low of 92 days by March 31, 2022. After this trough, the operating cycle increased steadily, reaching a peak of 119 days by December 31, 2022 and remaining at a similar level of 119 days by March 31, 2023. This reflects a lengthening in the overall time required to convert inventory and receivables into cash, mainly influenced by the increasing inventory processing period despite some recovery in receivables collection.
Average Payables Payment Period
Carrier Global Corp., average payables payment period 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 | ||||||||||||||||||
| Payables turnover | 5.29 | 5.28 | 5.28 | 6.09 | 5.83 | 6.27 | 6.57 | 5.87 | 5.92 | 6.38 | — | — | — | |||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||
| Average payables payment period1 | 69 | 69 | 69 | 60 | 63 | 58 | 56 | 62 | 62 | 57 | — | — | — | |||||
| Benchmarks (no. days) | ||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||
| Boeing Co. | 57 | 59 | 57 | 59 | 54 | 57 | 59 | 67 | 74 | 74 | — | — | — | |||||
| Caterpillar Inc. | 78 | 77 | 76 | 77 | 82 | 84 | 79 | 80 | 82 | 77 | — | — | — | |||||
| Eaton Corp. plc | 80 | 81 | 79 | 82 | 78 | 77 | 71 | 70 | 65 | 58 | — | — | — | |||||
| GE Aerospace | 102 | 123 | 116 | 116 | 110 | 110 | 109 | 109 | 103 | 100 | — | — | — | |||||
| Honeywell International Inc. | 104 | 103 | 99 | 101 | 100 | 101 | 95 | 97 | 95 | 95 | — | — | — | |||||
| Lockheed Martin Corp. | 21 | 13 | 17 | 15 | 17 | 5 | 10 | 10 | 12 | 6 | — | — | — | |||||
| RTX Corp. | 67 | 68 | 63 | 68 | 58 | 62 | 60 | 56 | 64 | 66 | — | — | — | |||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.29 = 69
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio, starting from the first quarter of 2020 with missing data, was recorded at 6.38 in March 2021. Over the subsequent quarters of 2021, this ratio showed slight fluctuations, decreasing marginally to 5.92 and 5.87 before increasing to 6.57 by December 2021. In 2022, the ratio gradually declined from 6.27 in March to 5.28 by December and remained stable at that level through March 2023. This trend suggests a decreasing frequency of payables turnover over time, indicating that the company is taking longer to pay its suppliers in recent quarters compared to the early part of the period analyzed.
- Average Payables Payment Period
- The average payables payment period was 57 days in March 2021, which lengthened slightly to 62 days during the middle quarters of 2021 before shortening back to 56 days by the end of that year. In 2022, the period increased steadily—from 58 days in March up to 69 days by December—and this duration remained constant through March 2023. This increasing trend in the payment period corresponds inversely with the decline in the payables turnover ratio, reflecting that the company has been extending the time it takes to settle payables over the course of the reported periods.
- Summary
- Overall, the data reveal a clear pattern of elongation in the average payment period alongside a reduction in payables turnover. This indicates a strategic or operational shift towards slower payment timing to suppliers since early 2021. The stabilization of payment duration around 69 days in the most recent quarters might suggest that the company has reached a consistent or target payment cycle. The incremental changes throughout 2021 and 2022 reflect a gradual adjustment rather than abrupt shifts, which could be driven by changes in working capital management policies or external economic factors influencing payment practices.
Cash Conversion Cycle
Carrier Global Corp., cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||||||||||||||
| Average inventory processing period | 66 | 64 | 65 | 59 | 59 | 49 | 50 | 50 | 53 | 48 | — | — | — | |||||
| Average receivable collection period | 53 | 51 | 54 | 51 | 46 | 43 | 49 | 58 | 57 | 58 | — | — | — | |||||
| Average payables payment period | 69 | 69 | 69 | 60 | 63 | 58 | 56 | 62 | 62 | 57 | — | — | — | |||||
| Short-term Activity Ratio | ||||||||||||||||||
| Cash conversion cycle1 | 50 | 46 | 50 | 50 | 42 | 34 | 43 | 46 | 48 | 49 | — | — | — | |||||
| Benchmarks | ||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||
| Boeing Co. | 396 | 407 | 427 | 453 | 453 | 444 | 429 | 426 | 437 | 405 | — | — | — | |||||
| Caterpillar Inc. | 133 | 124 | 134 | 135 | 133 | 124 | 132 | 132 | 139 | 134 | — | — | — | |||||
| Eaton Corp. plc | 85 | 81 | 82 | 83 | 80 | 66 | 69 | 69 | 69 | 63 | — | — | — | |||||
| GE Aerospace | 81 | 80 | 89 | 87 | 84 | 77 | 81 | 79 | 82 | 79 | — | — | — | |||||
| Honeywell International Inc. | 70 | 64 | 67 | 71 | 63 | 51 | 58 | 53 | 55 | 55 | — | — | — | |||||
| Lockheed Martin Corp. | 15 | 21 | 17 | 27 | 17 | 25 | 20 | 24 | 21 | 28 | — | — | — | |||||
| RTX Corp. | 63 | 55 | 61 | 61 | 62 | 58 | 60 | 62 | 64 | 65 | — | — | — | |||||
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 66 + 53 – 69 = 50
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period displayed a generally increasing trend from March 2021 through March 2023. Starting at 48 days in March 2021, it rose gradually, reaching 66 days by March 2023. Notably, there was a sharper increase beginning in June 2022, indicating slower inventory turnover during that period.
- Average receivable collection period
- The average receivable collection period showed moderate fluctuations over the observed quarters. Initially at 58 days in March 2021, it decreased to a low of 43 days in March 2022, before gradually increasing again to 53 days by March 2023. This pattern suggests a temporary improvement in collection efficiency around early 2022 followed by some loosening in subsequent periods.
- Average payables payment period
- The average payables payment period generally trended upwards across the data span. Beginning at 57 days in March 2021, it increased and fluctuated, ultimately reaching a peak of 69 days by March 2023. There was a notable rise between September 2022 and December 2022, where the payment period jumped from 60 to 69 days, suggesting extended payment terms or slower payments to suppliers during this time.
- Cash conversion cycle
- The cash conversion cycle decreased from 49 days in March 2021 to a low of 34 days in March 2022, indicating improved working capital efficiency. However, after this low, the cycle extended again, fluctuating between 42 and 50 days in the following quarters, and arriving again at 50 days as of March 2023. Despite some improvement early on, the overall cash conversion cycle remained relatively stable toward the end of the period under review.