Carrier Global (STU:4PN) Interest Coverage : 2.76 (As of Mar. 2024)

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What is Carrier Global Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Carrier Global's Operating Income for the three months ended in Mar. 2024 was €456 Mil. Carrier Global's Interest Expense for the three months ended in Mar. 2024 was €-166 Mil. Carrier Global's interest coverage for the quarter that ended in Mar. 2024 was 2.76. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Carrier Global's Interest Coverage or its related term are showing as below:

STU:4PN' s Interest Coverage Range Over the Past 10 Years
Min: 5.19 Med: 7.98 Max: 32.15
Current: 5.19

STU:4PN's Interest Coverage is ranked worse than
58.77% of 1266 companies
in the Construction industry
Industry Median: 7.16 vs STU:4PN: 5.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Carrier Global Interest Coverage Historical Data

The historical data trend for Carrier Global's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Carrier Global Interest Coverage Chart

Carrier Global Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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32.15

6.48

7.58

7.98

6.82

Carrier Global Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															7.30	8.72	9.63	2.72	2.76

Competitive Comparison of Carrier Global's Interest Coverage

For the Building Products & Equipment subindustry, Carrier Global's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Construction Industry

For the Construction industry and Industrials sector, Carrier Global's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Carrier Global's Interest Coverage falls into.

Carrier Global Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Carrier Global's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Carrier Global's Interest Expense was €-332 Mil. Its Operating Income was €2,263 Mil. And its Long-Term Debt & Capital Lease Obligation was €13,418 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2263.156	/	-331.954
	=	6.82

Carrier Global's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Carrier Global's Interest Expense was €-166 Mil. Its Operating Income was €456 Mil. And its Long-Term Debt & Capital Lease Obligation was €14,860 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	456.32	/	-165.6
	=	2.76

The higher the ratio, the stronger the company's Financial Strength is.

Carrier Global (STU:4PN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Carrier Global Interest Coverage Related Terms

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

Carrier Global (STU:4PN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Carrier Global Corp (STU:4PN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CARR:USA CARR:Mexico 4PN:Germany C1RR34:Brazil CARG:Austria

Address

13995 Pasteur Boulevard, Palm Beach Gardens, FL, USA, 33418

Website

https://www.corporate.carrier.com

Carrier Global manufactures heating, ventilation, and air conditioning, refrigeration, and fire and security products. The HVAC business serves both residential and commercial markets (HVAC segment sales mix is 60% commercial and 40% residential). Carrier's refrigeration segment consists of its transportation refrigeration, Sensitech supply chain monitoring, and commercial refrigeration businesses. The firm's fire and security business manufactures fire detection and suppression, access controls, and intrusion detection products. In April 2023, Carrier announced that it plans to divest its fire and security and commercial refrigeration businesses. The firm also announced the pending acquisition of Germany-based Viessmann for approximately $13 billion.

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