Otis Worldwide Corp (OTIS)
Fixed asset turnover
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 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 | 721,000 | 704,000 | 688,000 |
| Fixed asset turnover | 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, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,059,000K ÷ $727,000K
= 19.34
Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. Otis Worldwide Corp has consistently maintained a high fixed asset turnover ratio in recent quarters, averaging around 19.30 to 19.80. This indicates that the company is effectively generating revenue from its investment in fixed assets such as property, plant, and equipment.
The slight fluctuations in the fixed asset turnover ratio over the quarters do not deviate significantly from the average range, suggesting that Otis Worldwide Corp has a stable and efficient operation in converting its fixed assets into revenue. The company's ability to consistently achieve a high fixed asset turnover ratio reflects strong operational efficiency and effective management of its asset base.
Overall, the trend of high fixed asset turnover ratios for Otis Worldwide Corp indicates that the company is effectively utilizing its fixed assets to drive revenue generation, which is a positive signal for investors and stakeholders interested in the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023