Carrier Global Corp. (NYSE:CARR)

The period between 2020 and 2022 demonstrates a fluctuating, yet generally stable, total asset turnover ratio. Net sales increased from 2020 to 2021, while total assets also increased, leading to an improved turnover ratio. However, the increase in net sales slowed in 2022, and total assets remained relatively flat, resulting in a slight decrease in the total asset turnover ratio.

Total Asset Turnover

The total asset turnover ratio increased from 0.70 in 2020 to 0.79 in 2021, indicating improved efficiency in utilizing assets to generate sales. This suggests the company was more effective at converting its investments in assets into revenue during 2021. A subsequent decrease to 0.78 in 2022 suggests a slight reduction in this efficiency.

Net Sales Trend

Net sales experienced a notable increase between 2020 and 2021, growing from US$17,456 million to US$20,613 million. The rate of growth slowed considerably in 2022, with net sales reaching US$20,421 million. This indicates a potential stabilization or moderation in sales momentum.

Total Assets Trend

Total assets exhibited a modest increase from US$25,093 million in 2020 to US$26,172 million in 2021. Asset levels remained relatively consistent in 2022, at US$26,086 million. The stabilization of total assets in the most recent year suggests a pause in significant capital investment or asset expansion.

The combined trends suggest that while the company initially improved its asset utilization, the momentum slowed in 2022. The relatively stable asset base coupled with a slower sales growth rate contributed to the slight decline in the total asset turnover ratio during that year. Further investigation into the factors influencing sales growth and asset management strategies may be warranted.