Otis Worldwide Corp (OTIS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,670,000 | 6,400,000 | 6,143,000 | 8,261,000 | 6,493,000 |
| Total current liabilities | US$ in thousands | 7,749,000 | 6,479,000 | 6,843,000 | 6,247,000 | 6,673,000 |
| Current ratio | 0.99 | 0.99 | 0.90 | 1.32 | 0.97 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,670,000K ÷ $7,749,000K
= 0.99
Based on the provided data, Otis Worldwide Corp's current ratio has shown fluctuations over the past five years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.
In December 2020, the current ratio was 0.97, indicating that the company may have had difficulty meeting its short-term liabilities with its current assets. However, by December 2021, the current ratio improved significantly to 1.32, suggesting that the company had a better ability to cover its short-term obligations.
Subsequently, in December 2022, the current ratio dropped to 0.90, signaling a decrease in the company's short-term liquidity position. However, in both December 2023 and December 2024, the current ratio remained stable at 0.99, indicating a consistent ability to meet short-term obligations with current assets, albeit slightly below the ideal ratio of 1.
Overall, the fluctuation in Otis Worldwide Corp's current ratio over the five-year period suggests varying levels of short-term liquidity and ability to cover immediate financial obligations. It would be advisable for stakeholders to monitor this ratio closely to ensure the company maintains a healthy liquidity position.
Peer comparison
Dec 31, 2024