Otis Worldwide Corp (OTIS)
Payables 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 |
| Payables | US$ in thousands | 1,879,000 | 1,878,000 | 1,717,000 | 1,556,000 | 1,453,000 |
| Payables turnover | 1.06 | 1.08 | 1.11 | 1.35 | 1.49 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,994,000K ÷ $1,879,000K
= 1.06
The payables turnover ratio for Otis Worldwide Corp has shown a decreasing trend over the years, declining from 1.49 in December 2020 to 1.06 in December 2024. This ratio measures the efficiency with which the company pays its suppliers. A lower payables turnover ratio may indicate a longer time taken by the company to settle its payables, which could potentially strain relationships with suppliers. It is essential for Otis Worldwide Corp to closely monitor and manage its payables effectively to maintain healthy supplier relationships and optimize cash flow management.
Peer comparison
Dec 31, 2024
Company name
Symbol
Payables turnover
Otis Worldwide Corp
OTIS
1.06
Emerson Electric Company
EMR
11.74
GE Aerospace
GE
0.65
GE Vernova LLC
GEV
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