Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Carrier Global Corp., short-term (operating) 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Carrier Global Corp. inventory turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Carrier Global Corp. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Carrier Global Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Carrier Global Corp. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Carrier Global Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Carrier Global Corp. number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Carrier Global Corp. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Carrier Global Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Carrier Global Corp. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Inventory Turnover
Carrier Global Corp., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cost of products and services sold | 14,957) | 14,633) | 12,347) | |
| Inventories, net | 2,640) | 1,970) | 1,629) | |
| Short-term Activity Ratio | ||||
| Inventory turnover1 | 5.67 | 7.43 | 7.58 | |
| Benchmarks | ||||
| Inventory Turnover, Competitors2 | ||||
| Boeing Co. | 0.81 | 0.75 | 0.78 | |
| Caterpillar Inc. | 2.54 | 2.53 | 2.55 | |
| Eaton Corp. plc | 4.04 | 4.48 | 5.88 | |
| GE Aerospace | 3.19 | 3.40 | 3.80 | |
| Honeywell International Inc. | 4.04 | 4.29 | 4.94 | |
| Lockheed Martin Corp. | 18.68 | 19.45 | 16.01 | |
| RTX Corp. | 5.03 | 5.65 | 5.11 | |
| Inventory Turnover, Sector | ||||
| Capital Goods | 2.28 | 2.28 | 2.28 | |
| Inventory Turnover, Industry | ||||
| Industrials | 3.99 | 3.87 | 3.61 | |
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
Inventory turnover = Cost of products and services sold ÷ Inventories, net
= 14,957 ÷ 2,640 = 5.67
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Carrier Global Corp. inventory turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
Carrier Global Corp., receivables 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) | |
| Accounts receivable, net | 2,833) | 2,403) | 2,781) | |
| Short-term Activity Ratio | ||||
| Receivables turnover1 | 7.21 | 8.58 | 6.28 | |
| Benchmarks | ||||
| Receivables Turnover, Competitors2 | ||||
| Boeing Co. | 26.46 | 23.58 | 29.75 | |
| Caterpillar Inc. | 6.39 | 5.68 | 5.33 | |
| Eaton Corp. plc | 5.09 | 5.95 | 6.15 | |
| GE Aerospace | 4.09 | 4.55 | 4.37 | |
| Honeywell International Inc. | 4.77 | 5.04 | 4.78 | |
| Lockheed Martin Corp. | 26.34 | 34.15 | 33.06 | |
| RTX Corp. | 7.36 | 6.66 | 6.11 | |
| Receivables Turnover, Sector | ||||
| Capital Goods | 7.36 | 7.57 | 7.30 | |
| Receivables Turnover, Industry | ||||
| Industrials | 7.80 | 7.60 | 7.49 | |
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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 20,421 ÷ 2,833 = 7.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Carrier Global Corp. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Payables Turnover
Carrier Global Corp., payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Cost of products and services sold | 14,957) | 14,633) | 12,347) | |
| Accounts payable | 2,833) | 2,334) | 1,936) | |
| Short-term Activity Ratio | ||||
| Payables turnover1 | 5.28 | 6.27 | 6.38 | |
| Benchmarks | ||||
| Payables Turnover, Competitors2 | ||||
| Boeing Co. | 6.18 | 6.40 | 4.94 | |
| Caterpillar Inc. | 4.76 | 4.36 | 4.75 | |
| Eaton Corp. plc | 4.51 | 4.75 | 6.24 | |
| GE Aerospace | 2.98 | 3.32 | 3.67 | |
| Honeywell International Inc. | 3.53 | 3.40 | 3.86 | |
| Lockheed Martin Corp. | 27.25 | 74.34 | 64.48 | |
| RTX Corp. | 5.40 | 5.93 | 5.56 | |
| Payables Turnover, Sector | ||||
| Capital Goods | 5.21 | 5.60 | 5.54 | |
| Payables Turnover, Industry | ||||
| Industrials | 7.58 | 7.74 | 7.44 | |
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
Payables turnover = Cost of products and services sold ÷ Accounts payable
= 14,957 ÷ 2,833 = 5.28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Carrier Global Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Carrier Global Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Current assets | 9,879) | 11,407) | 8,524) | |
| Less: Current liabilities | 6,032) | 6,627) | 5,110) | |
| Working capital | 3,847) | 4,780) | 3,414) | |
| Net sales | 20,421) | 20,613) | 17,456) | |
| Short-term Activity Ratio | ||||
| Working capital turnover1 | 5.31 | 4.31 | 5.11 | |
| Benchmarks | ||||
| Working Capital Turnover, Competitors2 | ||||
| Boeing Co. | 3.42 | 2.34 | 1.69 | |
| Caterpillar Inc. | 4.62 | 3.54 | 2.84 | |
| Eaton Corp. plc | 8.70 | 65.65 | 5.42 | |
| GE Aerospace | 7.93 | 4.94 | 2.26 | |
| Honeywell International Inc. | 7.03 | 5.86 | 3.64 | |
| Lockheed Martin Corp. | 12.93 | 11.52 | 12.01 | |
| RTX Corp. | 20.15 | 9.75 | 7.52 | |
| Working Capital Turnover, Sector | ||||
| Capital Goods | 6.79 | 5.01 | 3.24 | |
| Working Capital Turnover, Industry | ||||
| Industrials | 9.67 | 6.90 | 4.47 | |
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
Working capital turnover = Net sales ÷ Working capital
= 20,421 ÷ 3,847 = 5.31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Carrier Global Corp. working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Inventory Processing Period
Carrier Global Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Inventory turnover | 5.67 | 7.43 | 7.58 | |
| Short-term Activity Ratio (no. days) | ||||
| Average inventory processing period1 | 64 | 49 | 48 | |
| Benchmarks (no. days) | ||||
| Average Inventory Processing Period, Competitors2 | ||||
| Boeing Co. | 452 | 486 | 467 | |
| Caterpillar Inc. | 144 | 144 | 143 | |
| Eaton Corp. plc | 90 | 82 | 62 | |
| GE Aerospace | 114 | 107 | 96 | |
| Honeywell International Inc. | 90 | 85 | 74 | |
| Lockheed Martin Corp. | 20 | 19 | 23 | |
| RTX Corp. | 73 | 65 | 71 | |
| Average Inventory Processing Period, Sector | ||||
| Capital Goods | 160 | 160 | 160 | |
| Average Inventory Processing Period, Industry | ||||
| Industrials | 91 | 94 | 101 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.67 = 64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Carrier Global Corp. number of days of inventory outstanding deteriorated from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Carrier Global Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Receivables turnover | 7.21 | 8.58 | 6.28 | |
| Short-term Activity Ratio (no. days) | ||||
| Average receivable collection period1 | 51 | 43 | 58 | |
| Benchmarks (no. days) | ||||
| Average Receivable Collection Period, Competitors2 | ||||
| Boeing Co. | 14 | 15 | 12 | |
| Caterpillar Inc. | 57 | 64 | 68 | |
| Eaton Corp. plc | 72 | 61 | 59 | |
| GE Aerospace | 89 | 80 | 83 | |
| Honeywell International Inc. | 77 | 72 | 76 | |
| Lockheed Martin Corp. | 14 | 11 | 11 | |
| RTX Corp. | 50 | 55 | 60 | |
| Average Receivable Collection Period, Sector | ||||
| Capital Goods | 50 | 48 | 50 | |
| Average Receivable Collection Period, Industry | ||||
| Industrials | 47 | 48 | 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.21 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Carrier Global Corp. number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Operating Cycle
Carrier Global Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Average inventory processing period | 64 | 49 | 48 | |
| Average receivable collection period | 51 | 43 | 58 | |
| Short-term Activity Ratio | ||||
| Operating cycle1 | 115 | 92 | 106 | |
| Benchmarks | ||||
| Operating Cycle, Competitors2 | ||||
| Boeing Co. | 466 | 501 | 479 | |
| Caterpillar Inc. | 201 | 208 | 211 | |
| Eaton Corp. plc | 162 | 143 | 121 | |
| GE Aerospace | 203 | 187 | 179 | |
| Honeywell International Inc. | 167 | 157 | 150 | |
| Lockheed Martin Corp. | 34 | 30 | 34 | |
| RTX Corp. | 123 | 120 | 131 | |
| Operating Cycle, Sector | ||||
| Capital Goods | 210 | 208 | 210 | |
| Operating Cycle, Industry | ||||
| Industrials | 138 | 142 | 150 | |
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 cycle = Average inventory processing period + Average receivable collection period
= 64 + 51 = 115
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Carrier Global Corp. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Carrier Global Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Payables turnover | 5.28 | 6.27 | 6.38 | |
| Short-term Activity Ratio (no. days) | ||||
| Average payables payment period1 | 69 | 58 | 57 | |
| Benchmarks (no. days) | ||||
| Average Payables Payment Period, Competitors2 | ||||
| Boeing Co. | 59 | 57 | 74 | |
| Caterpillar Inc. | 77 | 84 | 77 | |
| Eaton Corp. plc | 81 | 77 | 58 | |
| GE Aerospace | 123 | 110 | 100 | |
| Honeywell International Inc. | 103 | 107 | 95 | |
| Lockheed Martin Corp. | 13 | 5 | 6 | |
| RTX Corp. | 68 | 62 | 66 | |
| Average Payables Payment Period, Sector | ||||
| Capital Goods | 70 | 65 | 66 | |
| Average Payables Payment Period, Industry | ||||
| Industrials | 48 | 47 | 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.28 = 69
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Carrier Global Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Cash Conversion Cycle
Carrier Global Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Average inventory processing period | 64 | 49 | 48 | |
| Average receivable collection period | 51 | 43 | 58 | |
| Average payables payment period | 69 | 58 | 57 | |
| Short-term Activity Ratio | ||||
| Cash conversion cycle1 | 46 | 34 | 49 | |
| Benchmarks | ||||
| Cash Conversion Cycle, Competitors2 | ||||
| Boeing Co. | 407 | 444 | 405 | |
| Caterpillar Inc. | 124 | 124 | 134 | |
| Eaton Corp. plc | 81 | 66 | 63 | |
| GE Aerospace | 80 | 77 | 79 | |
| Honeywell International Inc. | 64 | 50 | 55 | |
| Lockheed Martin Corp. | 21 | 25 | 28 | |
| RTX Corp. | 55 | 58 | 65 | |
| Cash Conversion Cycle, Sector | ||||
| Capital Goods | 140 | 143 | 144 | |
| Cash Conversion Cycle, Industry | ||||
| Industrials | 90 | 95 | 101 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 64 + 51 – 69 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Carrier Global Corp. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |