Otis Worldwide Corp (OTIS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,994,000 | 2,023,000 | 1,898,000 | 2,102,000 | 2,169,000 |
| Inventory | US$ in thousands | 557,000 | 612,000 | 617,000 | 622,000 | 659,000 |
| Inventory turnover | 3.58 | 3.31 | 3.08 | 3.38 | 3.29 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,994,000K ÷ $557,000K
= 3.58
Otis Worldwide Corp's inventory turnover ratio has shown a fluctuating trend over the past five years, with values ranging from 3.08 to 3.58. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times the inventory is sold and replaced within a specific period.
In 2020, the inventory turnover was 3.29, indicating that the company turned over its inventory approximately 3.29 times during that year. The ratio increased slightly to 3.38 in 2021, suggesting a better efficiency in managing inventory.
However, the inventory turnover ratio dropped to 3.08 in 2022, reflecting a lower rate of inventory turnover compared to the previous years. The subsequent years saw an improvement, with the ratio reaching 3.31 in 2023 and 3.58 in 2024. These higher ratios indicate an enhanced efficiency in inventory management for Otis Worldwide Corp in those years.
Overall, while there have been fluctuations in the inventory turnover ratio for Otis Worldwide Corp, the general trend shows a potential improvement in inventory management efficiency over the five-year period. Further analysis of the company's operations and industry benchmarks could provide more insights into the effectiveness of its inventory management strategies.
Peer comparison
Dec 31, 2024