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 Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Carrier Global Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal 453 336 434
State 120 83 74
United States 573 419 508
Foreign 259 354 244
Current 832 773 752
Federal (23) (125) 13
State (29) (14) 6
United States (52) (139) 19
Foreign (72) 65 78
Future (124) (74) 97
Income tax expense 708 699 849

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Carrier Global Corp. current increased from 2020 to 2021 and from 2021 to 2022.
Future Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Carrier Global Corp. future decreased from 2020 to 2021 and from 2021 to 2022.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Carrier Global Corp. income tax expense decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Effective Income Tax Rate (EITR)

Carrier Global Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00%
State income tax 1.50% 1.90% 1.70%
Tax on international activities -1.00% 7.20% 4.20%
Separation impact 0.00% 0.00% 3.40%
TCC acquisition impact -4.20% 0.00% 0.00%
Other -0.80% -1.00% -0.60%
Effective income tax rate 16.50% 29.10% 29.70%

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
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Carrier Global Corp. effective income tax rate decreased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Carrier Global Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Insurance and employee benefits 161 198 109
Other assets basis differences 284 166 152
Other liabilities basis differences 571 512 487
Tax loss carryforward 177 175 258
Tax credit carryforward 29 24 63
Valuation allowances (100) (90) (231)
Future income tax benefits 1,122 985 838
Goodwill and intangible assets (449) (270) (411)
Other asset basis differences (395) (307) (336)
Future income tax payables (844) (577) (747)
Future income tax benefit (payables) 278 408 91

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
Future income tax benefits Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Carrier Global Corp. future income tax benefits increased from 2020 to 2021 and from 2021 to 2022.
Future income tax benefit (payables) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Carrier Global Corp. future income tax benefit (payables) increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 612 563 449
Total assets (adjusted) 25,474 25,609 24,644
Adjustment to Total Liabilities
Total liabilities (as reported) 18,010 19,078 18,515
Less: Noncurrent deferred tax liabilities, net 568 354 479
Total liabilities (adjusted) 17,442 18,724 18,036
Adjustment to Equity Attributable To Common Shareowners
Equity attributable to common shareowners (as reported) 7,758 6,767 6,252
Less: Net deferred tax assets (liabilities) 278 408 91
Equity attributable to common shareowners (adjusted) 7,480 6,359 6,161
Adjustment to Net Income Attributable To Common Shareowners
Net income attributable to common shareowners (as reported) 3,534 1,664 1,982
Add: Deferred income tax expense (benefit) (124) (74) 97
Net income attributable to common shareowners (adjusted) 3,410 1,590 2,079

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 Deferred Taxes (Summary)

Carrier Global Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 17.31% 8.07% 11.35%
Adjusted net profit margin 16.70% 7.71% 11.91%
Total Asset Turnover
Reported total asset turnover 0.78 0.79 0.70
Adjusted total asset turnover 0.80 0.80 0.71
Financial Leverage
Reported financial leverage 3.36 3.87 4.01
Adjusted financial leverage 3.41 4.03 4.00
Return on Equity (ROE)
Reported ROE 45.55% 24.59% 31.70%
Adjusted ROE 45.59% 25.00% 33.74%
Return on Assets (ROA)
Reported ROA 13.55% 6.36% 7.90%
Adjusted ROA 13.39% 6.21% 8.44%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Carrier Global Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
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 but then slightly deteriorated from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Carrier Global Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Carrier Global Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA A profitability ratio calculated as adjusted 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 Net Profit Margin

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
Net sales 20,421 20,613 17,456
Profitability Ratio
Net profit margin1 17.31% 8.07% 11.35%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,410 1,590 2,079
Net sales 20,421 20,613 17,456
Profitability Ratio
Adjusted net profit margin2 16.70% 7.71% 11.91%

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 Net profit margin = 100 × Net income attributable to common shareowners ÷ Net sales
= 100 × 3,534 ÷ 20,421 = 17.31%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to common shareowners ÷ Net sales
= 100 × 3,410 ÷ 20,421 = 16.70%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Carrier Global Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 20,421 20,613 17,456
Adjusted total assets 25,474 25,609 24,644
Activity Ratio
Adjusted total asset turnover2 0.80 0.80 0.71

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 ÷ 25,474 = 0.80

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 but then slightly deteriorated 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 25,474 25,609 24,644
Adjusted equity attributable to common shareowners 7,480 6,359 6,161
Solvency Ratio
Adjusted financial leverage2 3.41 4.03 4.00

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
= 25,474 ÷ 7,480 = 3.41

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Carrier Global Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,410 1,590 2,079
Adjusted equity attributable to common shareowners 7,480 6,359 6,161
Profitability Ratio
Adjusted ROE2 45.59% 25.00% 33.74%

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 × Adjusted net income attributable to common shareowners ÷ Adjusted equity attributable to common shareowners
= 100 × 3,410 ÷ 7,480 = 45.59%

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

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,410 1,590 2,079
Adjusted total assets 25,474 25,609 24,644
Profitability Ratio
Adjusted ROA2 13.39% 6.21% 8.44%

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 × Adjusted net income attributable to common shareowners ÷ Adjusted total assets
= 100 × 3,410 ÷ 25,474 = 13.39%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.