Otis Worldwide Corp (OTIS)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,217,000 | 14,121,000 | 14,057,000 | 14,139,000 | 14,059,000 | 13,883,000 | 13,708,000 | 13,478,000 | 13,542,000 | 13,664,000 | 13,942,000 | 14,163,000 | 14,162,000 | 14,130,000 | 13,772,000 | 13,086,000 | 12,676,000 |
| Property, plant and equipment | US$ in thousands | 701,000 | 721,000 | 708,000 | 713,000 | 727,000 | 708,000 | 715,000 | 719,000 | 719,000 | 692,000 | 724,000 | 757,000 | 774,000 | 775,000 | 781,000 | 765,000 | 774,000 |
| Fixed asset turnover | 20.28 | 19.59 | 19.85 | 19.83 | 19.34 | 19.61 | 19.17 | 18.75 | 18.83 | 19.75 | 19.26 | 18.71 | 18.30 | 18.23 | 17.63 | 17.11 | 16.38 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,217,000K ÷ $701,000K
= 20.28
Fixed asset turnover is a financial ratio that indicates how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better utilization of fixed assets.
Analyzing the fixed asset turnover trend of Otis Worldwide Corp from December 31, 2020, to December 31, 2024, we observe a consistent upward trend in the ratio. The ratio has increased steadily from 16.38 in December 2020 to 20.28 in December 2024. This indicates that Otis Worldwide Corp has been effectively utilizing its fixed assets to generate sales over the years.
The gradual increase in the fixed asset turnover ratio suggests that the company has been successful in optimizing its fixed asset investment to drive revenue growth. It also implies improved operational efficiency and better management of fixed assets on the company's part.
Overall, the increasing trend in the fixed asset turnover ratio for Otis Worldwide Corp reflects positively on the company's operational performance and efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2024