Otis Worldwide Corp (OTIS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,274,000 | 1,636,000 | 1,219,000 | 1,117,000 | 1,189,000 | 1,034,000 | 1,218,000 | 1,235,000 | 1,565,000 | 1,553,000 | 1,923,000 | 1,725,000 | 1,782,000 | 1,733,000 | 1,912,000 | 1,207,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 6,291,000 | 5,762,000 | 5,355,000 |
| Cash ratio | 0.20 | 0.24 | 0.17 | 0.16 | 0.17 | 0.17 | 0.19 | 0.19 | 0.25 | 0.24 | 0.29 | 0.27 | 0.27 | 0.28 | 0.33 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,274,000K
+ $—K)
÷ $6,479,000K
= 0.20
The cash ratio of Otis Worldwide Corp has shown some fluctuation over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In Q3 2023, the cash ratio was at its highest point of 0.40, indicating a relatively strong liquidity position. However, in Q2 2023 and Q1 2023, the cash ratio decreased to 0.32 and 0.31 respectively, which could suggest a temporary strain on liquidity.
Compared to the same quarter in the prior year (Q4 2022), the cash ratio remained fairly consistent, ranging from 0.32 to 0.35. This stability may indicate that Otis Worldwide Corp has maintained a relatively steady ability to meet short-term obligations with its available cash.
Overall, monitoring the cash ratio over time can provide valuable insights into Otis Worldwide Corp's liquidity management and financial health. It is essential for the company to ensure that it maintains an adequate level of cash reserves to meet its short-term liabilities efficiently.
Peer comparison
Dec 31, 2023