Otis Worldwide Corp (OTIS)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,993,000 | 2,000,000 | 2,010,000 | 2,043,000 | 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 |
| Payables | US$ in thousands | 1,879,000 | 1,779,000 | 1,716,000 | 1,641,000 | 1,878,000 | 1,655,000 | 1,744,000 | 1,515,000 | 1,717,000 | 1,521,000 | 1,616,000 | 1,507,000 | 1,556,000 | 1,662,000 | 1,569,000 | 1,459,000 | 1,453,000 |
| Payables turnover | 1.06 | 1.12 | 1.17 | 1.24 | 1.08 | 1.18 | 1.09 | 1.24 | 1.11 | 1.29 | 1.26 | 1.37 | 1.35 | 1.30 | 1.39 | 1.47 | 2.54 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,993,000K ÷ $1,879,000K
= 1.06
The payables turnover ratio for Otis Worldwide Corp has shown a declining trend from December 31, 2020, to December 31, 2024. The ratio decreased from 2.54 to 1.06 during this period. This suggests that the company is taking longer to pay its suppliers, which could indicate potential cash flow issues or changes in payment terms with suppliers. Companies typically aim for a higher payables turnover ratio, as it indicates efficient management of payables and cash flow. Otis Worldwide Corp may need to review its payables management practices to improve efficiency and relationships with suppliers.
Peer comparison
Dec 31, 2024