Otis Worldwide Corp (OTIS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,059,000 | 13,542,000 | 14,162,000 | 12,634,000 |
| Property, plant and equipment | US$ in thousands | 727,000 | 719,000 | 774,000 | 774,000 |
| Fixed asset turnover | 19.34 | 18.83 | 18.30 | 16.32 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,059,000K ÷ $727,000K
= 19.34
Otis Worldwide Corp's fixed asset turnover has been relatively high and increasing over the past five years. This ratio measures how efficiently the company is able to generate sales revenue from its investment in fixed assets. The upward trend from 2019 to 2023 indicates an improvement in the company's ability to utilize its fixed assets to generate revenue.
A fixed asset turnover ratio of 19.54 in 2023 suggests that for every dollar invested in fixed assets, the company generated $19.54 in sales. This indicates a high level of productivity and efficiency in utilizing its fixed assets to drive revenue generation.
Overall, the increasing trend in fixed asset turnover reflects positively on Otis Worldwide Corp's operational efficiency and effectiveness in managing its fixed asset base to generate revenue.
Peer comparison
Dec 31, 2023