Carrier Global Corporation — Earnings Quality Grade F
CARR · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 44 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -3.3%, CFFO 346.4%. Cash follows revenue
Expense Quality
Inventory 8.0% vs COGS -2.3%. Normal
CapEx growth -24.5% vs revenue -3.3%. Normal
SG&A/Gross Profit = 55.0%. Normal
Gross margin 25.9%, change -0.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.69. Profits backed by cash
FCF $2.1B, FCF/NI = 1.43
Accruals ratio = -2.8%. Low accruals
Cash $1.6B covers only 13% of debt $12.3B
Balance Sheet Health
Goodwill+Intangibles $21.8B = 158% of equity. Over 50%
Debt/EBITDA = 3.5x. Healthy
Other assets 19.7% vs revenue -3.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
M-Score = -2.57 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09