Otis Worldwide Corp (OTIS)
Payables 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 |
| Payables | US$ in thousands | 1,878,000 | 1,717,000 | 1,556,000 | 1,453,000 |
| Payables turnover | 1.08 | 1.11 | 1.35 | 1.49 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,023,000K ÷ $1,878,000K
= 1.08
Otis Worldwide Corp's payables turnover ratio has trended downwards over the past five years, declining from 6.98 in 2019 to 5.33 in 2023. This indicates that the company is taking longer to pay its suppliers compared to previous years. A lower payables turnover ratio may suggest inefficiencies in managing accounts payables, potentially leading to strained supplier relationships or missed opportunities for early payment discounts. Otis Worldwide Corp should further analyze its payables turnover ratio to identify the root causes of the downward trend and take appropriate actions to optimize its payables management.
Peer comparison
Dec 31, 2023