Otis Worldwide Corp (OTIS)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Payables turnover | 1.08 | 1.11 | 1.35 | 1.49 | |
| Number of days of payables | days | 338.84 | 330.19 | 270.19 | 244.51 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.08
= 338.84
Otis Worldwide Corp's number of days of payables has shown a fluctuating trend over the past five years. In 2023, the number of days of payables increased to 68.44 days from 64.18 days in 2022. This suggests that the company took longer to pay its suppliers and vendors in 2023 compared to the previous year.
Comparing to earlier years, the number of days of payables was higher in 2021 at 56.20 days, 2020 at 59.08 days, and 2019 at 52.28 days. This indicates a general trend of the company taking longer to settle its payables over the years, with some fluctuations.
A higher number of days of payables may suggest that Otis Worldwide Corp is taking advantage of extended payment terms from its suppliers or facing cash flow constraints. It is important for the company to manage its payables effectively to maintain good relationships with suppliers while also preserving its financial health.
Peer comparison
Dec 31, 2023