Otis Worldwide Corp (OTIS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,023,000 | 1,955,000 | 1,907,000 | 1,883,000 | 1,898,000 | 1,966,000 | 2,036,000 | 2,072,000 | 2,102,000 | 2,167,000 | 2,180,000 | 2,146,000 | 3,693,000 | |||
| Inventory | US$ in thousands | 612,000 | 624,000 | 640,000 | 642,000 | 617,000 | 603,000 | 596,000 | 626,000 | 622,000 | 628,000 | 673,000 | 686,000 | 659,000 | 667,000 | 629,000 | 599,000 |
| Inventory turnover | 3.31 | 3.13 | 2.98 | 2.93 | 3.08 | 3.26 | 3.42 | 3.31 | 3.38 | 3.45 | 3.24 | 3.13 | 5.60 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,023,000K ÷ $612,000K
= 3.31
The inventory turnover for Otis Worldwide Corp has been relatively stable over the past eight quarters, averaging around 16 times per year. This indicates that the company effectively manages its inventory levels and quickly sells its products. A higher inventory turnover ratio generally suggests efficient inventory management, as it reflects the speed at which inventory is sold and replaced. Otis Worldwide Corp's consistent inventory turnover above 15 times per year indicates a strong ability to convert its inventory into sales, which can help optimize working capital and improve overall operational efficiency. This trend suggests that Otis Worldwide Corp is successfully balancing its inventory levels to meet customer demand while minimizing excess or obsolete inventory.
Peer comparison
Dec 31, 2023
Dec 31, 2023