Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Carrier Global Corp., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Carrier Global Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Carrier Global Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Carrier Global Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Carrier Global Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Carrier Global Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Carrier Global Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Carrier Global Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Carrier Global Corp. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Carrier Global Corp. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Debt to Equity
Carrier Global Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| 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 | |
| Benchmarks | ||||
| Debt to Equity, Competitors2 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 2.33 | 2.29 | 2.42 | |
| Eaton Corp. plc | 0.51 | 0.52 | 0.54 | |
| GE Aerospace | 0.89 | 0.87 | 2.11 | |
| Honeywell International Inc. | 1.17 | 1.06 | 1.28 | |
| Lockheed Martin Corp. | 1.68 | 1.07 | 2.02 | |
| RTX Corp. | 0.44 | 0.43 | 0.44 | |
| Debt to Equity, Sector | ||||
| Capital Goods | 1.33 | 1.26 | 1.75 | |
| Debt to Equity, Industry | ||||
| Industrials | 1.42 | 1.37 | 1.82 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Equity attributable to common shareowners
= 8,842 ÷ 7,758 = 1.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Carrier Global Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Carrier Global Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| Total debt | 8,842) | 9,696) | 10,227) | |
| Current operating lease liabilities (included in Accrued liabilities) | 132) | 130) | 161) | |
| Long-term operating lease liabilities | 529) | 527) | 642) | |
| Total debt (including operating lease liability) | 9,503) | 10,353) | 11,030) | |
| Equity attributable to common shareowners | 7,758) | 6,767) | 6,252) | |
| Solvency Ratio | ||||
| Debt to equity (including operating lease liability)1 | 1.22 | 1.53 | 1.76 | |
| Benchmarks | ||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 2.37 | 2.33 | 2.46 | |
| Eaton Corp. plc | 0.54 | 0.55 | 0.57 | |
| GE Aerospace | 0.96 | 0.94 | 2.20 | |
| Honeywell International Inc. | 1.23 | 1.11 | 1.32 | |
| Lockheed Martin Corp. | 1.81 | 1.19 | 2.21 | |
| RTX Corp. | 0.47 | 0.46 | 0.47 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||
| Capital Goods | 1.39 | 1.32 | 1.81 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||
| Industrials | 1.59 | 1.54 | 2.00 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to common shareowners
= 9,503 ÷ 7,758 = 1.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Carrier Global Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Carrier Global Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| Total debt | 8,842) | 9,696) | 10,227) | |
| Equity attributable to common shareowners | 7,758) | 6,767) | 6,252) | |
| Total capital | 16,600) | 16,463) | 16,479) | |
| Solvency Ratio | ||||
| Debt to capital1 | 0.53 | 0.59 | 0.62 | |
| Benchmarks | ||||
| Debt to Capital, Competitors2 | ||||
| Boeing Co. | 1.39 | 1.35 | 1.40 | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | |
| Eaton Corp. plc | 0.34 | 0.34 | 0.35 | |
| GE Aerospace | 0.47 | 0.47 | 0.68 | |
| Honeywell International Inc. | 0.54 | 0.51 | 0.56 | |
| Lockheed Martin Corp. | 0.63 | 0.52 | 0.67 | |
| RTX Corp. | 0.31 | 0.30 | 0.31 | |
| Debt to Capital, Sector | ||||
| Capital Goods | 0.57 | 0.56 | 0.64 | |
| Debt to Capital, Industry | ||||
| Industrials | 0.59 | 0.58 | 0.65 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,842 ÷ 16,600 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Carrier Global Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Carrier Global Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| Total debt | 8,842) | 9,696) | 10,227) | |
| Current operating lease liabilities (included in Accrued liabilities) | 132) | 130) | 161) | |
| Long-term operating lease liabilities | 529) | 527) | 642) | |
| Total debt (including operating lease liability) | 9,503) | 10,353) | 11,030) | |
| Equity attributable to common shareowners | 7,758) | 6,767) | 6,252) | |
| Total capital (including operating lease liability) | 17,261) | 17,120) | 17,282) | |
| Solvency Ratio | ||||
| Debt to capital (including operating lease liability)1 | 0.55 | 0.60 | 0.64 | |
| Benchmarks | ||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||
| Boeing Co. | 1.37 | 1.34 | 1.39 | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | |
| Eaton Corp. plc | 0.35 | 0.36 | 0.36 | |
| GE Aerospace | 0.49 | 0.49 | 0.69 | |
| Honeywell International Inc. | 0.55 | 0.53 | 0.57 | |
| Lockheed Martin Corp. | 0.64 | 0.54 | 0.69 | |
| RTX Corp. | 0.32 | 0.31 | 0.32 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||
| Capital Goods | 0.58 | 0.57 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||
| Industrials | 0.61 | 0.61 | 0.67 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,503 ÷ 17,261 = 0.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Carrier Global Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Carrier Global Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| Total debt | 8,842) | 9,696) | 10,227) | |
| Total assets | 26,086) | 26,172) | 25,093) | |
| Solvency Ratio | ||||
| Debt to assets1 | 0.34 | 0.37 | 0.41 | |
| Benchmarks | ||||
| Debt to Assets, Competitors2 | ||||
| Boeing Co. | 0.42 | 0.42 | 0.42 | |
| Caterpillar Inc. | 0.45 | 0.46 | 0.47 | |
| Eaton Corp. plc | 0.25 | 0.25 | 0.25 | |
| GE Aerospace | 0.17 | 0.18 | 0.30 | |
| Honeywell International Inc. | 0.31 | 0.30 | 0.35 | |
| Lockheed Martin Corp. | 0.29 | 0.23 | 0.24 | |
| RTX Corp. | 0.20 | 0.20 | 0.20 | |
| Debt to Assets, Sector | ||||
| Capital Goods | 0.28 | 0.28 | 0.32 | |
| Debt to Assets, Industry | ||||
| Industrials | 0.31 | 0.30 | 0.33 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,842 ÷ 26,086 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Carrier Global Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Carrier Global Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current portion of long-term debt | 140) | 183) | 191) | |
| Long-term debt, net of current portion | 8,702) | 9,513) | 10,036) | |
| Total debt | 8,842) | 9,696) | 10,227) | |
| Current operating lease liabilities (included in Accrued liabilities) | 132) | 130) | 161) | |
| Long-term operating lease liabilities | 529) | 527) | 642) | |
| Total debt (including operating lease liability) | 9,503) | 10,353) | 11,030) | |
| Total assets | 26,086) | 26,172) | 25,093) | |
| Solvency Ratio | ||||
| Debt to assets (including operating lease liability)1 | 0.36 | 0.40 | 0.44 | |
| Benchmarks | ||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||
| Boeing Co. | 0.43 | 0.43 | 0.43 | |
| Caterpillar Inc. | 0.46 | 0.46 | 0.48 | |
| Eaton Corp. plc | 0.26 | 0.27 | 0.27 | |
| GE Aerospace | 0.19 | 0.19 | 0.31 | |
| Honeywell International Inc. | 0.33 | 0.32 | 0.36 | |
| Lockheed Martin Corp. | 0.32 | 0.26 | 0.26 | |
| RTX Corp. | 0.21 | 0.21 | 0.21 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||
| Capital Goods | 0.30 | 0.29 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||
| Industrials | 0.34 | 0.34 | 0.36 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,503 ÷ 26,086 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Carrier Global Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Carrier Global Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||
| Financial Leverage, Competitors2 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 5.16 | 5.02 | 5.11 | |
| Eaton Corp. plc | 2.06 | 2.07 | 2.13 | |
| GE Aerospace | 5.16 | 4.93 | 7.13 | |
| Honeywell International Inc. | 3.73 | 3.47 | 3.68 | |
| Lockheed Martin Corp. | 5.71 | 4.64 | 8.43 | |
| RTX Corp. | 2.19 | 2.21 | 2.25 | |
| Financial Leverage, Sector | ||||
| Capital Goods | 4.71 | 4.55 | 5.54 | |
| Financial Leverage, Industry | ||||
| Industrials | 4.65 | 4.52 | 5.49 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Equity attributable to common shareowners
= 26,086 ÷ 7,758 = 3.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Carrier Global Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Carrier Global Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net income attributable to common shareowners | 3,534) | 1,664) | 1,982) | |
| Add: Net income attributable to noncontrolling interest | 50) | 37) | 24) | |
| Add: Income tax expense | 708) | 699) | 849) | |
| Add: Interest expense | 302) | 319) | 298) | |
| Earnings before interest and tax (EBIT) | 4,594) | 2,719) | 3,153) | |
| Solvency Ratio | ||||
| Interest coverage1 | 15.21 | 8.52 | 10.58 | |
| Benchmarks | ||||
| Interest Coverage, Competitors2 | ||||
| Boeing Co. | -0.98 | -0.88 | -5.71 | |
| Caterpillar Inc. | 20.80 | 17.88 | 8.80 | |
| Eaton Corp. plc | 21.22 | 21.11 | 12.72 | |
| GE Aerospace | 1.88 | -0.96 | 2.59 | |
| Honeywell International Inc. | 16.41 | 22.09 | 17.75 | |
| Lockheed Martin Corp. | 11.72 | 14.27 | 14.93 | |
| RTX Corp. | 5.64 | 4.71 | -0.65 | |
| Interest Coverage, Sector | ||||
| Capital Goods | 4.84 | 3.98 | 1.99 | |
| Interest Coverage, Industry | ||||
| Industrials | 4.98 | 5.14 | 1.25 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,594 ÷ 302 = 15.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Carrier Global Corp. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Fixed Charge Coverage
Carrier Global Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net income attributable to common shareowners | 3,534) | 1,664) | 1,982) | |
| Add: Net income attributable to noncontrolling interest | 50) | 37) | 24) | |
| Add: Income tax expense | 708) | 699) | 849) | |
| Add: Interest expense | 302) | 319) | 298) | |
| Earnings before interest and tax (EBIT) | 4,594) | 2,719) | 3,153) | |
| Add: Operating lease expense | 148) | 200) | 197) | |
| Earnings before fixed charges and tax | 4,742) | 2,919) | 3,350) | |
| Interest expense | 302) | 319) | 298) | |
| Operating lease expense | 148) | 200) | 197) | |
| Fixed charges | 450) | 519) | 495) | |
| Solvency Ratio | ||||
| Fixed charge coverage1 | 10.54 | 5.62 | 6.77 | |
| Benchmarks | ||||
| Fixed Charge Coverage, Competitors2 | ||||
| Boeing Co. | -0.70 | -0.64 | -4.75 | |
| Caterpillar Inc. | 14.92 | 12.73 | 6.58 | |
| Eaton Corp. plc | 10.01 | 10.40 | 6.24 | |
| GE Aerospace | 1.35 | -0.22 | 1.93 | |
| Honeywell International Inc. | 11.00 | 13.67 | 11.49 | |
| Lockheed Martin Corp. | 8.44 | 9.95 | 11.12 | |
| RTX Corp. | 4.40 | 3.66 | -0.22 | |
| Fixed Charge Coverage, Sector | ||||
| Capital Goods | 3.61 | 3.06 | 1.66 | |
| Fixed Charge Coverage, Industry | ||||
| Industrials | 3.30 | 3.44 | 1.12 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,742 ÷ 450 = 10.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Carrier Global Corp. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |