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. 2026 was CHF189 Mil. Carrier Global's Interest Expense for the
three
months ended in Mar. 2026 was CHF-87 Mil.
Carrier Global's interest coverage for the quarter that ended in Mar. 2026 was 2.16.
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:
XSWX:CARR'
s Interest Coverage Range Over the Past 10 Years
Min: 3.47 Med: 6.74 Max: 30.09
Current: 3.47
XSWX:CARR's Interest Coverage is ranked worse than 70.38% of 1354
companies
in the Construction industry
Industry Median: 7.865
vs XSWX:CARR: 3.47
Carrier Global (XSWX:CARR) 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
Carrier Global Interest Coverage Historical Data
* Premium members only.
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.
XSWX:CARR vs JCI, MAIR, LII: Interest Coverage Comparison
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 Interest Coverage vs 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.
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:
* 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 (XSWX:CARR) has a Interest Coverage of 2.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Carrier Global and its competitors. This is 68% below median its historical median of 6.74. Over the past decade, Carrier Global's Interest Coverage has ranged from 3.47 to 30.09. According to the industry distribution chart, Carrier Global ranks #953 out of 1354 companies in the Construction industry, placing it in the top 70.4%.
Is Carrier Global's Interest Coverage too high?
Carrier Global's current Interest Coverage of 2.16 is 68% below median its 10-year median of 6.74. Over the past 10 years, this metric has ranged from a low of 3.47 to a high of 30.09. The Construction industry median Interest Coverage is 7.87. Carrier Global's value of 2.16 is 72.5% below this industry median. Based on the distribution chart, Carrier Global ranks #953 out of 1354 companies in the Construction industry, which is below the industry midpoint. Overall, Carrier Global has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Carrier Global's Interest Coverage compare to JCI and MAIR?
According to the Construction industry distribution chart, Carrier Global ranks #953 out of 1354 companies for Interest Coverage. This places Carrier Global in the lower half of its industry. The industry median Interest Coverage is 7.87. Carrier Global's value of 2.16 is 72.5% below this benchmark. Historically, Carrier Global's own Interest Coverage has ranged from 3.47 to 30.09 over the past decade. While the company's 10-year median is 6.74 vs. the industry median of 7.87, Carrier Global has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.87, based on 1,354 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carrier Global's current Interest Coverage of 2.16 is 72.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Carrier Global and its competitors. For the Construction industry, the median Interest Coverage is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carrier Global's current Interest Coverage is 2.16, which is 68% below median its own 10-year median of 6.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carrier Global stock overvalued right now?
Carrier Global (XSWX:CARR) has a current Interest Coverage of 2.16. The stock's GF Value™ is CHF55.81, compared to a current price of CHF60.71 — trading 8.8% above its estimated fair value. The current Interest Coverage is 2.16, which is 68% below median its 10-year median of 6.74 and 72.5% below the Construction industry median of 7.87. Carrier Global's overall GF Score™ is 79/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Carrier Global (XSWX:CARR), the current Interest Coverage is 2.16 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carrier Global (XSWX:CARR) Overvalued in 2026?
Based on GuruFocus' analysis, Carrier Global stock appears to be overvalued.
The current stock price of CHF60.71 is trading 8.8% above its estimated GF Value™ of CHF55.81.
Key valuation signals for XSWX:CARR:
Interest Coverage: 2.16 (68% below median its 10-year median of 6.74)
GF Value™: CHF55.81 vs. price of CHF60.71 (8.8% above fair value)
Industry Position: 72.5% below the Construction median (#953 of 1354)
No single metric tells the full story. See the XSWX:CARR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carrier Global, spun out of United Technologies in 2020, manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its flagship Carrier brand, as well as Bryant, Payne, Heil, and others across various price points. In 2024, Carrier acquired Viessmann Climate Solutions to expand its footprint in Europe with heat pumps, boilers, and solar PV equipment. Proceeds from the sale of Carrier's fire and security (Honeywell) and commercial refrigeration (Haier) businesses reduced debt and focused the company on global HVAC and refrigeration solutions. Carrier generates 75% of sales from equipment and 25% from parts and services. The company derives 50% of revenue from the US, 30% from Europe, and 20% from the Asia-Pacific region.
79GF Score
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