GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Carrier Global Corp (NYSE:CARR) » Definitions » Cash Conversion Cycle

CARR (Carrier Global) Cash Conversion Cycle : 42.87 (As of Mar. 2025)


View and export this data going back to 2020. Start your Free Trial

What is Carrier Global Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Carrier Global's Days Sales Outstanding for the three months ended in Mar. 2025 was 49.23.
Carrier Global's Days Inventory for the three months ended in Mar. 2025 was 59.82.
Carrier Global's Days Payable for the three months ended in Mar. 2025 was 66.18.
Therefore, Carrier Global's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was 42.87.


Carrier Global Cash Conversion Cycle Historical Data

The historical data trend for Carrier Global's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Carrier Global Cash Conversion Cycle Chart

Carrier Global Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial 44.64 37.54 47.44 36.02 29.35

Carrier Global Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.92 43.06 41.70 43.55 42.87

Competitive Comparison of Carrier Global's Cash Conversion Cycle

For the Building Products & Equipment subindustry, Carrier Global's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Carrier Global's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, Carrier Global's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Carrier Global's Cash Conversion Cycle falls into.


;
;

Carrier Global Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Carrier Global's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=38.4+45.58-54.63
=29.35

Carrier Global's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=49.23+59.82-66.18
=42.87

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Carrier Global  (NYSE:CARR) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Carrier Global Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Carrier Global's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Carrier Global Business Description

Address
13995 Pasteur Boulevard, Palm Beach Gardens, FL, USA, 33418
Carrier Global provides HVAC and refrigeration products and services that serve the global residential, commercial, and transportation markets. The company's HVAC businesses account for approximately 85% of consolidated revenue, with residential and light commercial HVAC and commercial HVAC representing about 60% and 25% of total revenue, respectively. Carrier's refrigeration segment, which accounts for approximately 15% of consolidated revenue, consists of its transportation refrigeration and Sensitech supply chain monitoring products and services.
Executives
Kyle Crockett officer: Vice President, Controller 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Kevin J. O'connor officer: VP, Chief Legal Officer 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Ajay Agrawal officer: VP, Strategy & Services 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Nadia Villeneuve officer: See Remarks 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Jurgen Timperman officer: President, Fire & Security 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
David L. Gitlin officer: President and CEO UNITED TECHNOLOGIES CORPORATION, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Susan N Story director ONE ENERGY PLACE, PENSCOLA FL 32520
Timothy N White officer: President, Refrigeration 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Christopher John Nelson officer: President, HVAC 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
David Appel officer: President, Refrigeration 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS GA 33418
Beth Wozniak director 555 WAYZATA BLVD. SUITE 600, MINNEAPOLIS MN 55419
Patrick P. Goris officer: Senior Vice President & CFO 1201 SOUTH SECOND STREET, MILWAUKEE WI 53204
John J Greisch director C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873
Michael M Mcnamara director C/O FLEXTRONICS INTERNATIONAL LTD, 2090 FORTUNE DRIVE, SAN JOSE CA 95131
John V Faraci director, officer: Executive Chairman C/O INTERNATIONAL PAPER, 400 ATLANTIC STREET, STAMFORD CT 06921