Otis Worldwide Corp (OTIS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,400,000 | 6,143,000 | 8,261,000 | 6,493,000 |
| Total current liabilities | US$ in thousands | 6,479,000 | 6,843,000 | 6,247,000 | 6,673,000 |
| Current ratio | 0.99 | 0.90 | 1.32 | 0.97 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,400,000K ÷ $6,479,000K
= 0.99
The current ratio of Otis Worldwide Corp has fluctuated over the past five years, ranging from 0.90 to 1.32. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone. In 2023, the current ratio stood at 0.99, suggesting that the company may be slightly less able to cover its current liabilities with its current assets compared to the previous year. It is important for the company to closely monitor its current ratio to ensure it maintains a healthy balance between current assets and current liabilities for financial stability and liquidity purposes.
Peer comparison
Dec 31, 2023