Stock Analysis on Net
Stock Analysis on Net

Carrier Global Corp. (NYSE:CARR)

This company has been moved to the archive! The financial data has not been updated since April 26, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Carrier Global Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Goodwill 9,977 9,349 10,139
Customer relationships 1,431 945 1,558
Patents and trademarks 401 232 301
Monitoring lines — — 71
Service portfolios and other 953 688 644
Amortized, gross amount 2,785 1,865 2,574
Accumulated amortization (1,506) (1,420) (2,108)
Amortized, net amount 1,279 445 466
Trademarks and other 63 64 571
Unamortized 63 64 571
Intangible assets, net 1,342 509 1,037
Goodwill and intangible assets 11,319 9,858 11,176

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Carrier Global Corp. goodwill decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Carrier Global Corp. intangible assets, net decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Carrier Global Corp. goodwill and intangible assets decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Adjustments to Financial Statements: Removal of Goodwill

Carrier Global Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 26,086 26,172 25,093
Less: Goodwill 9,977 9,349 10,139
Total assets (adjusted) 16,109 16,823 14,954
Adjustment to Equity Attributable To Common Shareowners
Equity attributable to common shareowners (as reported) 7,758 6,767 6,252
Less: Goodwill 9,977 9,349 10,139
Equity attributable to common shareowners (adjusted) (2,219) (2,582) (3,887)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Carrier Global Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Carrier Global Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.78 0.79 0.70
Adjusted total asset turnover 1.27 1.23 1.17
Financial Leverage
Reported financial leverage 3.36 3.87 4.01
Adjusted financial leverage — — —
Return on Equity (ROE)
Reported ROE 45.55% 24.59% 31.70%
Adjusted ROE — — —
Return on Assets (ROA)
Reported ROA 13.55% 6.36% 7.90%
Adjusted ROA 21.94% 9.89% 13.25%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Carrier Global Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Carrier Global Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Carrier Global Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales 20,421 20,613 17,456
Total assets 26,086 26,172 25,093
Activity Ratio
Total asset turnover1 0.78 0.79 0.70
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 20,421 20,613 17,456
Adjusted total assets 16,109 16,823 14,954
Activity Ratio
Adjusted total asset turnover2 1.27 1.23 1.17

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2022 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 20,421 ÷ 26,086 = 0.78

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 20,421 ÷ 16,109 = 1.27

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Carrier Global Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 26,086 26,172 25,093
Equity attributable to common shareowners 7,758 6,767 6,252
Solvency Ratio
Financial leverage1 3.36 3.87 4.01
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 16,109 16,823 14,954
Adjusted equity attributable to common shareowners (2,219) (2,582) (3,887)
Solvency Ratio
Adjusted financial leverage2 — — —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to common shareowners
= 26,086 ÷ 7,758 = 3.36

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to common shareowners
= 16,109 ÷ -2,219 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to common shareowners 3,534 1,664 1,982
Equity attributable to common shareowners 7,758 6,767 6,252
Profitability Ratio
ROE1 45.55% 24.59% 31.70%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to common shareowners 3,534 1,664 1,982
Adjusted equity attributable to common shareowners (2,219) (2,582) (3,887)
Profitability Ratio
Adjusted ROE2 — — —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2022 Calculations

1 ROE = 100 × Net income attributable to common shareowners ÷ Equity attributable to common shareowners
= 100 × 3,534 ÷ 7,758 = 45.55%

2 Adjusted ROE = 100 × Net income attributable to common shareowners ÷ Adjusted equity attributable to common shareowners
= 100 × 3,534 ÷ -2,219 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to common shareowners 3,534 1,664 1,982
Total assets 26,086 26,172 25,093
Profitability Ratio
ROA1 13.55% 6.36% 7.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to common shareowners 3,534 1,664 1,982
Adjusted total assets 16,109 16,823 14,954
Profitability Ratio
Adjusted ROA2 21.94% 9.89% 13.25%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2022 Calculations

1 ROA = 100 × Net income attributable to common shareowners ÷ Total assets
= 100 × 3,534 ÷ 26,086 = 13.55%

2 Adjusted ROA = 100 × Net income attributable to common shareowners ÷ Adjusted total assets
= 100 × 3,534 ÷ 16,109 = 21.94%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Carrier Global Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.