Otis Worldwide Corp (OTIS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,753,000 | 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 | 3,171,000 | 3,082,000 | 3,109,000 |
| Receivables turnover | 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, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,059,000K ÷ $3,753,000K
= 3.75
The receivables turnover ratio measures how efficiently Otis Worldwide Corp is collecting on its credit sales. The trend of the receivables turnover ratio over the past eight quarters shows some fluctuations.
The ratio ranged from 3.96 to 4.45 during this period. In Q2 and Q3 of 2022, the ratio was relatively high at 4.42 and 4.45, indicating that Otis Worldwide Corp was collecting its receivables more frequently during those quarters. However, in the most recent quarters, Q2 and Q3 of 2023, the ratio dropped slightly to 3.96 and 4.06, respectively, suggesting that the company may be taking longer to collect on its credit sales during these periods.
Overall, the receivables turnover ratio has remained relatively stable, hovering around the 4.00 mark, which indicates that Otis Worldwide Corp has been maintaining a consistent level of efficiency in collecting its accounts receivable. Further analysis of the company's collection policies and potential changes in customer payment behavior may be necessary to fully understand the fluctuations in the receivables turnover ratio.
Peer comparison
Dec 31, 2023