Otis Worldwide Corp (OTIS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,059,000 | 13,542,000 | 14,162,000 | 12,634,000 |
| Receivables | US$ in thousands | 3,753,000 | 3,551,000 | 3,429,000 | 3,470,000 |
| Receivables turnover | 3.75 | 3.81 | 4.13 | 3.64 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,059,000K ÷ $3,753,000K
= 3.75
The receivables turnover for Otis Worldwide Corp has shown a declining trend over the past five years. In 2019, the receivables turnover was at its highest at 4.59, indicating that the company collected its accounts receivable approximately 4.59 times during that year. However, there has been a gradual decrease in the receivables turnover ratio since then, reaching 4.02 in 2023.
A decreasing receivables turnover ratio may suggest that Otis Worldwide Corp is taking longer to collect its accounts receivable, which could potentially indicate issues with credit policies, collection processes, or a buildup of uncollectible accounts. It is important for the company to closely monitor and manage its accounts receivable turnover to ensure efficient cash flow and timely collection of outstanding balances.
Overall, a declining trend in receivables turnover ratio requires further investigation to identify the underlying reasons and potential areas for improvement in the company's receivables management practices.
Peer comparison
Dec 31, 2023