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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Carrier Global Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2023 31.08% = 9.57% × 3.25
Dec 31, 2022 45.55% = 13.55% × 3.36
Sep 30, 2022 50.17% = 14.15% × 3.54
Jun 30, 2022 40.99% = 11.60% × 3.53
Mar 31, 2022 37.45% = 10.99% × 3.41
Dec 31, 2021 24.59% = 6.36% × 3.87
Sep 30, 2021 32.23% = 8.62% × 3.74
Jun 30, 2021 36.94% = 9.70% × 3.81
Mar 31, 2021 34.98% = 9.13% × 3.83
Dec 31, 2020 31.70% = 7.90% × 4.01
Sep 30, 2020 — = — × 5.05
Jun 30, 2020 — = — × 6.00
Mar 31, 2020 — = — × 8.16

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Carrier Global Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2023 31.08% = 12.02% × 0.80 × 3.25
Dec 31, 2022 45.55% = 17.31% × 0.78 × 3.36
Sep 30, 2022 50.17% = 17.55% × 0.81 × 3.54
Jun 30, 2022 40.99% = 13.50% × 0.86 × 3.53
Mar 31, 2022 37.45% = 12.93% × 0.85 × 3.41
Dec 31, 2021 24.59% = 8.07% × 0.79 × 3.87
Sep 30, 2021 32.23% = 11.08% × 0.78 × 3.74
Jun 30, 2021 36.94% = 12.65% × 0.77 × 3.81
Mar 31, 2021 34.98% = 12.43% × 0.73 × 3.83
Dec 31, 2020 31.70% = 11.35% × 0.70 × 4.01
Sep 30, 2020 — = — × — × 5.05
Jun 30, 2020 — = — × — × 6.00
Mar 31, 2020 — = — × — × 8.16

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Carrier Global Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2023 9.57% = 12.02% × 0.80
Dec 31, 2022 13.55% = 17.31% × 0.78
Sep 30, 2022 14.15% = 17.55% × 0.81
Jun 30, 2022 11.60% = 13.50% × 0.86
Mar 31, 2022 10.99% = 12.93% × 0.85
Dec 31, 2021 6.36% = 8.07% × 0.79
Sep 30, 2021 8.62% = 11.08% × 0.78
Jun 30, 2021 9.70% = 12.65% × 0.77
Mar 31, 2021 9.13% = 12.43% × 0.73
Dec 31, 2020 7.90% = 11.35% × 0.70
Sep 30, 2020 — = — × —
Jun 30, 2020 — = — × —
Mar 31, 2020 — = — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2023 is the decrease in profitability measured by net profit margin ratio.