Otis Worldwide Corp (OTIS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,023,000 | 1,898,000 | 2,102,000 | 2,169,000 |
| Inventory | US$ in thousands | 612,000 | 617,000 | 622,000 | 659,000 |
| Inventory turnover | 3.31 | 3.08 | 3.38 | 3.29 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,023,000K ÷ $612,000K
= 3.31
The inventory turnover for Otis Worldwide Corp has shown a fluctuating trend over the past five years. It increased from 13.62 in 2020 to 16.37 in 2023, indicating that the company has been able to sell its inventory more frequently in recent years. This suggests that Otis has been managing its inventory efficiently and effectively. Despite minor variations in between, the inventory turnover has generally remained relatively stable, with the highest turnover being recorded in 2023. This metric reflects the company's ability to convert its inventory into sales and generate revenue, which is crucial for maintaining healthy cash flow and profitability.
Peer comparison
Dec 31, 2023