Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Carrier Global Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Carrier Global Corp. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Carrier Global Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Carrier Global Corp. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Carrier Global Corp. equity turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Fixed Asset Turnover
Carrier Global Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | 20,421) | 20,613) | 17,456) | |
| Fixed assets, net | 2,241) | 1,826) | 1,810) | |
| Long-term Activity Ratio | ||||
| Net fixed asset turnover1 | 9.11 | 11.29 | 9.64 | |
| Benchmarks | ||||
| Net Fixed Asset Turnover, Competitors2 | ||||
| Boeing Co. | 6.31 | 5.70 | 4.92 | |
| Caterpillar Inc. | 4.70 | 3.99 | 3.15 | |
| Eaton Corp. plc | 6.59 | 6.41 | 6.02 | |
| GE Aerospace | 5.96 | 5.47 | 1.75 | |
| Honeywell International Inc. | 6.48 | 6.18 | 5.86 | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | |
| RTX Corp. | 4.42 | 4.30 | 3.78 | |
| Net Fixed Asset Turnover, Sector | ||||
| Capital Goods | 5.79 | 5.46 | 3.55 | |
| Net Fixed Asset Turnover, Industry | ||||
| Industrials | 3.22 | 3.04 | 2.41 | |
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
Net fixed asset turnover = Net sales ÷ Fixed assets, net
= 20,421 ÷ 2,241 = 9.11
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Carrier Global Corp. net fixed asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Carrier Global Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | 20,421) | 20,613) | 17,456) | |
| Fixed assets, net | 2,241) | 1,826) | 1,810) | |
| Operating lease right-of-use assets | 642) | 640) | 788) | |
| Fixed assets, net (including operating lease, right-of-use asset) | 2,883) | 2,466) | 2,598) | |
| Long-term Activity Ratio | ||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.08 | 8.36 | 6.72 | |
| Benchmarks | ||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||
| Boeing Co. | 5.55 | 5.04 | 4.45 | |
| Caterpillar Inc. | 4.49 | 3.79 | 3.00 | |
| Eaton Corp. plc | 5.58 | 5.60 | 5.26 | |
| GE Aerospace | 5.08 | 4.55 | 1.63 | |
| Honeywell International Inc. | 5.58 | 5.28 | 5.15 | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | |
| RTX Corp. | 3.95 | 3.80 | 3.36 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||
| Capital Goods | 5.13 | 4.80 | 3.25 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||
| Industrials | 2.77 | 2.62 | 2.13 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Fixed assets, net (including operating lease, right-of-use asset)
= 20,421 ÷ 2,883 = 7.08
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Carrier Global Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Total Asset Turnover
Carrier Global Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | 20,421) | 20,613) | 17,456) | |
| Total assets | 26,086) | 26,172) | 25,093) | |
| Long-term Activity Ratio | ||||
| Total asset turnover1 | 0.78 | 0.79 | 0.70 | |
| Benchmarks | ||||
| Total Asset Turnover, Competitors2 | ||||
| Boeing Co. | 0.49 | 0.45 | 0.38 | |
| Caterpillar Inc. | 0.69 | 0.58 | 0.50 | |
| Eaton Corp. plc | 0.59 | 0.58 | 0.56 | |
| GE Aerospace | 0.39 | 0.36 | 0.29 | |
| Honeywell International Inc. | 0.57 | 0.53 | 0.51 | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | |
| RTX Corp. | 0.42 | 0.40 | 0.35 | |
| Total Asset Turnover, Sector | ||||
| Capital Goods | 0.54 | 0.50 | 0.43 | |
| Total Asset Turnover, Industry | ||||
| Industrials | 0.66 | 0.60 | 0.51 | |
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
Total asset turnover = Net sales ÷ Total assets
= 20,421 ÷ 26,086 = 0.78
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Carrier Global Corp. total asset turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Equity Turnover
Carrier Global Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | 20,421) | 20,613) | 17,456) | |
| Equity attributable to common shareowners | 7,758) | 6,767) | 6,252) | |
| Long-term Activity Ratio | ||||
| Equity turnover1 | 2.63 | 3.05 | 2.79 | |
| Benchmarks | ||||
| Equity Turnover, Competitors2 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 3.57 | 2.92 | 2.55 | |
| Eaton Corp. plc | 1.22 | 1.20 | 1.20 | |
| GE Aerospace | 2.02 | 1.76 | 2.05 | |
| Honeywell International Inc. | 2.12 | 1.85 | 1.86 | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | |
| RTX Corp. | 0.92 | 0.88 | 0.78 | |
| Equity Turnover, Sector | ||||
| Capital Goods | 2.54 | 2.28 | 2.39 | |
| Equity Turnover, Industry | ||||
| Industrials | 2.94 | 2.58 | 2.75 | |
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
Equity turnover = Net sales ÷ Equity attributable to common shareowners
= 20,421 ÷ 7,758 = 2.63
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Carrier Global Corp. equity turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |