Otis Worldwide Corp (OTIS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,217,000 | 14,121,000 | 14,057,000 | 14,139,000 | 14,059,000 | 13,883,000 | 13,708,000 | 13,478,000 | 13,542,000 | 13,664,000 | 13,942,000 | 14,163,000 | 14,162,000 | 14,130,000 | 13,772,000 | 13,086,000 | 12,676,000 |
| Receivables | US$ in thousands | 3,641,000 | 3,851,000 | 3,851,000 | 3,912,000 | 3,753,000 | 3,678,000 | 3,717,000 | 3,588,000 | 3,551,000 | 3,299,000 | 3,400,000 | 3,480,000 | 3,429,000 | 3,538,000 | 3,530,000 | 3,464,000 | 3,470,000 |
| Receivables turnover | 3.90 | 3.67 | 3.65 | 3.61 | 3.75 | 3.77 | 3.69 | 3.76 | 3.81 | 4.14 | 4.10 | 4.07 | 4.13 | 3.99 | 3.90 | 3.78 | 3.65 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,217,000K ÷ $3,641,000K
= 3.90
The receivables turnover ratio for Otis Worldwide Corp has shown some fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is able to collect its accounts receivable during a given period.
Initially, the receivables turnover ratio was 3.65 times as of December 31, 2020, meaning that on average, the company collected its outstanding receivables approximately 3.65 times during that year. Subsequently, the ratio increased steadily, reaching a peak of 4.14 times as of September 30, 2022, reflecting improved efficiency in collecting receivables.
However, there was a slight decline in the ratio in the following quarters, with fluctuations observed in the range of 3.61 to 3.90 for the period ending December 31, 2024. Despite the fluctuations, the company's ability to collect its receivables remained relatively stable over the period under review.
It is essential for Otis Worldwide Corp to monitor its receivables turnover ratio consistently to ensure efficient management of its accounts receivable and maintain healthy cash flows. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024