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 Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — —
Total assets (adjusted) 26,086 26,172 25,093
Adjustment to Total Debt
Total debt (as reported) 8,842 9,696 10,227
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — —
Add: Current operating lease liabilities (included in Accrued liabilities) 132 130 161
Add: Long-term operating lease liabilities 529 527 642
Total debt (adjusted) 9,503 10,353 11,030

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

1, 2 Equal to total present value of future operating lease payments.

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

Adjusted Financial Ratios for Operating Leases (Summary)

Carrier Global Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.78 0.79 0.70
Adjusted total asset turnover 0.78 0.79 0.70
Debt to Equity2
Reported debt to equity 1.14 1.43 1.64
Adjusted debt to equity 1.22 1.53 1.76
Return on Assets3 (ROA)
Reported ROA 13.55% 6.36% 7.90%
Adjusted ROA 13.55% 6.36% 7.90%

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

1 See details »

2 See details »

3 See details »

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 but then slightly deteriorated from 2021 to 2022.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Carrier Global Corp. adjusted debt to equity 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 Operating Leases
Selected Financial Data (US$ in millions)
Net sales 20,421 20,613 17,456
Adjusted total assets 26,086 26,172 25,093
Activity Ratio
Adjusted total asset turnover2 0.78 0.79 0.70

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 ÷ 26,086 = 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 Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 8,842 9,696 10,227
Equity attributable to common shareowners 7,758 6,767 6,252
Solvency Ratio
Debt to equity1 1.14 1.43 1.64
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 9,503 10,353 11,030
Equity attributable to common shareowners 7,758 6,767 6,252
Solvency Ratio
Adjusted debt to equity2 1.22 1.53 1.76

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 Debt to equity = Total debt ÷ Equity attributable to common shareowners
= 8,842 ÷ 7,758 = 1.14

2 Adjusted debt to equity = Adjusted total debt ÷ Equity attributable to common shareowners
= 9,503 ÷ 7,758 = 1.22

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Carrier Global Corp. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

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 Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to common shareowners 3,534 1,664 1,982
Adjusted total assets 26,086 26,172 25,093
Profitability Ratio
Adjusted ROA2 13.55% 6.36% 7.90%

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 ÷ 26,086 = 13.55%

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.