Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Carrier Global Corp., profitability ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Carrier Global Corp. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Carrier Global Corp. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Carrier Global Corp. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Carrier Global Corp. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Carrier Global Corp. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Gross Profit Margin
Carrier Global Corp., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Gross margin | 5,464) | 5,980) | 5,109) | |
| Net sales | 20,421) | 20,613) | 17,456) | |
| Profitability Ratio | ||||
| Gross profit margin1 | 26.76% | 29.01% | 29.27% | |
| Benchmarks | ||||
| Gross Profit Margin, Competitors2 | ||||
| Boeing Co. | 5.26% | 4.84% | -9.78% | |
| Caterpillar Inc. | 26.91% | 26.30% | 25.47% | |
| Eaton Corp. plc | 33.19% | 32.28% | 30.52% | |
| GE Aerospace | 24.55% | 24.19% | 17.26% | |
| Honeywell International Inc. | 36.99% | 35.85% | 32.07% | |
| Lockheed Martin Corp. | 12.56% | 13.52% | 13.23% | |
| RTX Corp. | 20.38% | 19.40% | 15.08% | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 5,464 ÷ 20,421 = 26.76%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Carrier Global Corp. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Carrier Global Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Operating profit | 4,515) | 2,645) | 3,083) | |
| Net sales | 20,421) | 20,613) | 17,456) | |
| Profitability Ratio | ||||
| Operating profit margin1 | 22.11% | 12.83% | 17.66% | |
| Benchmarks | ||||
| Operating Profit Margin, Competitors2 | ||||
| Boeing Co. | -5.33% | -4.66% | -21.95% | |
| Caterpillar Inc. | 13.97% | 14.27% | 11.67% | |
| Eaton Corp. plc | 14.55% | 15.69% | 11.45% | |
| GE Aerospace | 6.05% | 8.58% | 5.49% | |
| Honeywell International Inc. | 18.12% | 18.03% | 17.45% | |
| Lockheed Martin Corp. | 12.65% | 13.61% | 13.22% | |
| RTX Corp. | 8.07% | 7.70% | -3.34% | |
| Operating Profit Margin, Sector | ||||
| Capital Goods | 8.29% | 9.11% | 3.00% | |
| Operating Profit Margin, Industry | ||||
| Industrials | 9.34% | 9.80% | 4.43% | |
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
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 4,515 ÷ 20,421 = 22.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Carrier Global Corp. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Profit Margin
Carrier Global Corp., net profit margin 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) | |
| Net sales | 20,421) | 20,613) | 17,456) | |
| Profitability Ratio | ||||
| Net profit margin1 | 17.31% | 8.07% | 11.35% | |
| Benchmarks | ||||
| Net Profit Margin, Competitors2 | ||||
| Boeing Co. | -7.41% | -6.75% | -20.42% | |
| Caterpillar Inc. | 11.85% | 13.47% | 7.68% | |
| Eaton Corp. plc | 11.86% | 10.92% | 7.90% | |
| GE Aerospace | 0.31% | -9.17% | 7.81% | |
| Honeywell International Inc. | 14.00% | 16.11% | 14.64% | |
| Lockheed Martin Corp. | 8.69% | 9.42% | 10.45% | |
| RTX Corp. | 7.75% | 6.00% | -6.22% | |
| Net Profit Margin, Sector | ||||
| Capital Goods | 5.27% | 3.71% | 1.85% | |
| Net Profit Margin, Industry | ||||
| Industrials | 5.27% | 6.43% | 1.43% | |
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 profit margin = 100 × Net income attributable to common shareowners ÷ Net sales
= 100 × 3,534 ÷ 20,421 = 17.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Carrier Global Corp. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Equity (ROE)
Carrier Global Corp., ROE 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) | |
| Equity attributable to common shareowners | 7,758) | 6,767) | 6,252) | |
| Profitability Ratio | ||||
| ROE1 | 45.55% | 24.59% | 31.70% | |
| Benchmarks | ||||
| ROE, Competitors2 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 42.25% | 39.37% | 19.56% | |
| Eaton Corp. plc | 14.45% | 13.06% | 9.44% | |
| GE Aerospace | 0.62% | -16.17% | 16.04% | |
| Honeywell International Inc. | 29.74% | 29.85% | 27.23% | |
| Lockheed Martin Corp. | 61.86% | 57.62% | 113.60% | |
| RTX Corp. | 7.16% | 5.29% | -4.88% | |
| ROE, Sector | ||||
| Capital Goods | 13.39% | 8.48% | 4.42% | |
| ROE, Industry | ||||
| Industrials | 15.53% | 16.58% | 3.94% | |
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
ROE = 100 × Net income attributable to common shareowners ÷ Equity attributable to common shareowners
= 100 × 3,534 ÷ 7,758 = 45.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Carrier Global Corp. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Carrier Global Corp., ROA 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) | |
| Total assets | 26,086) | 26,172) | 25,093) | |
| Profitability Ratio | ||||
| ROA1 | 13.55% | 6.36% | 7.90% | |
| Benchmarks | ||||
| ROA, Competitors2 | ||||
| Boeing Co. | -3.60% | -3.03% | -7.80% | |
| Caterpillar Inc. | 8.18% | 7.84% | 3.83% | |
| Eaton Corp. plc | 7.03% | 6.30% | 4.43% | |
| GE Aerospace | 0.12% | -3.28% | 2.25% | |
| Honeywell International Inc. | 7.97% | 8.60% | 7.40% | |
| Lockheed Martin Corp. | 10.84% | 12.41% | 13.47% | |
| RTX Corp. | 3.27% | 2.39% | -2.17% | |
| ROA, Sector | ||||
| Capital Goods | 2.84% | 1.86% | 0.80% | |
| ROA, Industry | ||||
| Industrials | 3.46% | 3.83% | 0.74% | |
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
ROA = 100 × Net income attributable to common shareowners ÷ Total assets
= 100 × 3,534 ÷ 26,086 = 13.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Carrier Global Corp. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |