Otis Worldwide Corp (OTIS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,300,000 | 827,000 | 942,000 | 884,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.30 | 0.10 | 0.12 | 0.14 | 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 |
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 fluctuations over the past few years, as seen in the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger ability to cover these liabilities.
From December 31, 2020, to June 30, 2022, the cash ratio remained relatively stable, ranging between 0.27 and 0.29. However, a slight decline was observed by September 30, 2022, reaching 0.17. This could indicate a potential decrease in the company's ability to cover short-term obligations with its available cash.
Subsequently, there was a gradual decrease in the cash ratio from March 31, 2023, to June 30, 2024, where it dropped to 0.10. This declining trend suggests that Otis Worldwide Corp may be experiencing challenges in maintaining sufficient cash reserves relative to its short-term liabilities during this period.
However, there was a notable improvement in the cash ratio by December 31, 2024, jumping to 0.30, the highest level observed in the data series. This spike could indicate a positive shift in the company's liquidity position, potentially due to increased cash holdings or better management of short-term liabilities.
In conclusion, while the cash ratio of Otis Worldwide Corp has experienced fluctuations over the analyzed period, the significant increase to 0.30 by December 31, 2024, suggests an improvement in the company's ability to cover its short-term obligations with available cash at the end of the period.
Peer comparison
Dec 31, 2024