Otis Worldwide Corp (OTIS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,300,000 | 1,274,000 | 1,189,000 | 1,565,000 | 1,782,000 |
| Short-term investments | US$ in thousands | — | 1,230,000 | — | — | — |
| Total current liabilities | US$ in thousands | 7,749,000 | 6,479,000 | 6,843,000 | 6,247,000 | 6,673,000 |
| Cash ratio | 0.30 | 0.39 | 0.17 | 0.25 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,300,000K
+ $—K)
÷ $7,749,000K
= 0.30
The cash ratio of Otis Worldwide Corp has shown some fluctuations over the years. As of December 31, 2020, the cash ratio was 0.27, indicating that for every dollar of current liabilities, the company had $0.27 in cash or cash equivalents. By December 31, 2021, the cash ratio decreased slightly to 0.25, suggesting a slight decrease in the company's ability to cover its short-term obligations with cash.
By December 31, 2022, the cash ratio declined further to 0.17, indicating a potential liquidity challenge as the company had less available cash to cover its current liabilities. However, by December 31, 2023, the cash ratio improved significantly to 0.39, showing a stronger liquidity position compared to the previous year.
As of December 31, 2024, the cash ratio was 0.30, indicating a moderate level of liquidity, although slightly lower compared to the peak in 2023. Overall, the fluctuating trend in the cash ratio suggests varying levels of liquidity management by Otis Worldwide Corp over the analyzed period.
Peer comparison
Dec 31, 2024