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 Inventory

Microsoft Excel

Inventory Disclosure

Carrier Global Corp., balance sheet: inventory

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Raw materials 884 559 363
Work-in-process 230 197 143
Finished goods 1,526 1,214 1,123
Inventories, net 2,640 1,970 1,629

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
Inventories, net Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Carrier Global Corp. inventories, net increased from 2020 to 2021 and from 2021 to 2022.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Inventories, Net
Inventories, net at LIFO (as reported) 2,640 1,970 1,629
Add: Inventory LIFO reserve 199 141 118
Inventories, net at FIFO (adjusted) 2,839 2,111 1,747
Adjustment to Current Assets
Current assets (as reported) 9,879 11,407 8,524
Add: Inventory LIFO reserve 199 141 118
Current assets (adjusted) 10,078 11,548 8,642
Adjustment to Total Assets
Total assets (as reported) 26,086 26,172 25,093
Add: Inventory LIFO reserve 199 141 118
Total assets (adjusted) 26,285 26,313 25,211
Adjustment to Equity Attributable To Common Shareowners
Equity attributable to common shareowners (as reported) 7,758 6,767 6,252
Add: Inventory LIFO reserve 199 141 118
Equity attributable to common shareowners (adjusted) 7,957 6,908 6,370
Adjustment to Net Income Attributable To Common Shareowners
Net income attributable to common shareowners (as reported) 3,534 1,664 1,982
Add: Increase (decrease) in inventory LIFO reserve 58 23 (2)
Net income attributable to common shareowners (adjusted) 3,592 1,687 1,980

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. inventory value on Dec 31, 2022 would be $2,839 (in millions) if the FIFO inventory method was used instead of LIFO. Carrier Global Corp. inventories, valued on a LIFO basis, on Dec 31, 2022 were $2,640. Carrier Global Corp. inventories would have been $199 higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

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

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Carrier Global Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current Ratio
Reported current ratio (LIFO) 1.64 1.72 1.67
Adjusted current ratio (FIFO) 1.67 1.74 1.69
Net Profit Margin
Reported net profit margin (LIFO) 17.31% 8.07% 11.35%
Adjusted net profit margin (FIFO) 17.59% 8.18% 11.34%
Total Asset Turnover
Reported total asset turnover (LIFO) 0.78 0.79 0.70
Adjusted total asset turnover (FIFO) 0.78 0.78 0.69
Financial Leverage
Reported financial leverage (LIFO) 3.36 3.87 4.01
Adjusted financial leverage (FIFO) 3.30 3.81 3.96
Return on Equity (ROE)
Reported ROE (LIFO) 45.55% 24.59% 31.70%
Adjusted ROE (FIFO) 45.14% 24.42% 31.08%
Return on Assets (ROA)
Reported ROA (LIFO) 13.55% 6.36% 7.90%
Adjusted ROA (FIFO) 13.67% 6.41% 7.85%

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 current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Carrier Global Corp. adjusted current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by 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 decreased from 2020 to 2021 and 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 Current Ratio

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Current assets 9,879 11,407 8,524
Current liabilities 6,032 6,627 5,110
Liquidity Ratio
Current ratio1 1.64 1.72 1.67
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets 10,078 11,548 8,642
Current liabilities 6,032 6,627 5,110
Liquidity Ratio
Adjusted current ratio2 1.67 1.74 1.69

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 Current ratio = Current assets ÷ Current liabilities
= 9,879 ÷ 6,032 = 1.64

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 10,078 ÷ 6,032 = 1.67

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Carrier Global Corp. adjusted current ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,592 1,687 1,980
Net sales 20,421 20,613 17,456
Profitability Ratio
Adjusted net profit margin2 17.59% 8.18% 11.34%

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 × 3,592 ÷ 20,421 = 17.59%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by 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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net sales 20,421 20,613 17,456
Adjusted total assets 26,285 26,313 25,211
Activity Ratio
Adjusted total asset turnover2 0.78 0.78 0.69

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 ÷ 26,285 = 0.78

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets 26,285 26,313 25,211
Adjusted equity attributable to common shareowners 7,957 6,908 6,370
Solvency Ratio
Adjusted financial leverage2 3.30 3.81 3.96

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
= 26,285 ÷ 7,957 = 3.30

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 decreased from 2020 to 2021 and 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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,592 1,687 1,980
Adjusted equity attributable to common shareowners 7,957 6,908 6,370
Profitability Ratio
Adjusted ROE2 45.14% 24.42% 31.08%

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 × 3,592 ÷ 7,957 = 45.14%

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income attributable to common shareowners 3,592 1,687 1,980
Adjusted total assets 26,285 26,313 25,211
Profitability Ratio
Adjusted ROA2 13.67% 6.41% 7.85%

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 × 3,592 ÷ 26,285 = 13.67%

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.