Otis Worldwide Corp (OTIS)
Working capital 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 |
| Total current assets | US$ in thousands | 7,670,000 | 6,495,000 | 6,238,000 | 6,138,000 | 6,400,000 | 6,749,000 | 6,417,000 | 6,153,000 | 6,143,000 | 5,829,000 | 6,150,000 | 7,844,000 | 8,261,000 | 6,375,000 | 6,681,000 | 6,346,000 | 6,493,000 |
| Total current liabilities | US$ in thousands | 7,749,000 | 8,097,000 | 7,895,000 | 6,318,000 | 6,479,000 | 6,749,000 | 7,158,000 | 6,823,000 | 6,843,000 | 5,992,000 | 6,338,000 | 6,651,000 | 6,247,000 | 6,363,000 | 6,716,000 | 6,395,000 | 6,673,000 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | 11.87 | 7.03 | 1,177.50 | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,217,000K ÷ ($7,670,000K – $7,749,000K)
= —
The working capital turnover ratio for Otis Worldwide Corp provides insight into how efficiently the company is utilizing its working capital to generate sales. As per the data provided, the working capital turnover ratio has shown significant fluctuations over the evaluated periods:
- For September 30, 2021, the ratio stood at 1,177.50, indicating a very high turnover of working capital, which may suggest efficient management of current assets and liabilities to support sales.
- The ratio declined to 7.03 by December 31, 2021, possibly indicating a decrease in the efficiency of working capital utilization compared to the previous period.
- It further increased to 11.87 by March 31, 2022, which could suggest an improvement in working capital management efficiency leading to higher sales generated from the invested working capital.
- However, the ratio was not available for the subsequent periods, indicating potentially incomplete information or changes in financial reporting practices.
It is crucial for Otis Worldwide Corp to monitor its working capital turnover ratio consistently to ensure optimal utilization of its resources for generating sales and maintaining sustainable business operations.
Peer comparison
Dec 31, 2024