Otis Worldwide Corp (OTIS)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,261,000 | 14,059,000 | 13,542,000 | 14,162,000 | 12,634,000 |
| Receivables | US$ in thousands | 3,641,000 | 3,753,000 | 3,551,000 | 3,429,000 | 3,470,000 |
| Receivables turnover | 3.92 | 3.75 | 3.81 | 4.13 | 3.64 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,261,000K ÷ $3,641,000K
= 3.92
The receivables turnover ratio measures how efficiently Otis Worldwide Corp is able to collect payments from its customers. Looking at the data provided, we observe fluctuations in the receivables turnover ratio over the years:
- In 2020, Otis had a receivables turnover ratio of 3.64, indicating that on average, the company collected its accounts receivable approximately 3.64 times during the year.
- By 2021, the ratio improved to 4.13, suggesting that Otis was able to collect payments from customers more frequently, possibly due to improved credit policies or more efficient collections processes.
- However, in 2022, the ratio decreased slightly to 3.81, indicating that the company took slightly longer to collect payments compared to the previous year.
- The trend continued in 2023, with a receivables turnover ratio of 3.75, showing a further decline in the collection efficiency.
- Finally, in 2024, the ratio increased to 3.92, but it was still below the peak in 2021.
Overall, fluctuations in the receivables turnover ratio suggest variations in Otis Worldwide Corp's ability to efficiently manage its accounts receivable and collect payments from customers. Further analysis of the company's credit policies, customer base, and collection processes could provide insights into the reasons behind these fluctuations in the receivables turnover ratio.
Peer comparison
Dec 31, 2024