Otis Worldwide Corp (OTIS)
Payables 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 | |||
| Payables | US$ in thousands | 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 | 1,392,000 | 1,349,000 | 1,102,000 |
| Payables turnover | 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, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,023,000K ÷ $1,878,000K
= 1.08
The payables turnover ratio for Otis Worldwide Corp has shown some fluctuations over the past eight quarters. The ratio was 5.33 in Q4 2023, which indicates that the company converted its accounts payable into purchases 5.33 times during the quarter. This ratio improved to 6.01 in Q3 2023, suggesting that the company was able to convert its payables into purchases more efficiently compared to the previous quarter.
In Q2 2023, the payables turnover ratio decreased slightly to 5.64 before increasing again to 6.41 in Q1 2023. This improvement suggests that Otis Worldwide Corp was managing its accounts payable effectively, turning them into purchases at a faster rate.
Comparing the ratios to the same periods in the previous year, we can see a similar pattern of fluctuations. The payables turnover ratio was 5.69 in Q4 2022, which increased to 6.45 in Q3 2022 before decreasing to 6.19 in Q2 2022. The ratio then increased to 6.72 in Q1 2022.
Overall, the payables turnover ratio for Otis Worldwide Corp has shown some variability but generally trending upward, indicating that the company has been managing its payables efficiently and effectively converting them into purchases. However, further analysis and comparison with industry benchmarks would provide more insight into the company's performance in this area.
Peer comparison
Dec 31, 2023