Otis Worldwide Corp (OTIS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,670,000 | 6,495,000 | 6,238,000 | 6,138,000 | 6,400,000 | 6,749,000 | 6,417,000 | 6,153,000 | 6,143,000 | 5,829,000 | 6,150,000 | 7,844,000 | 8,261,000 | 6,375,000 | 6,681,000 | 6,346,000 | 6,493,000 |
| 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 |
| Current ratio | 0.99 | 0.80 | 0.79 | 0.97 | 0.99 | 1.00 | 0.90 | 0.90 | 0.90 | 0.97 | 0.97 | 1.18 | 1.32 | 1.00 | 0.99 | 0.99 | 0.97 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,670,000K ÷ $7,749,000K
= 0.99
The current ratio of Otis Worldwide Corp has fluctuated over the past few years, ranging from a low of 0.79 to a high of 1.32. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Between December 31, 2020, and September 30, 2022, the current ratio remained relatively stable, hovering around 1, suggesting that Otis Worldwide Corp had a strong ability to cover its short-term obligations during this period. However, from December 31, 2022, to June 30, 2024, there was a noticeable decline in the current ratio, dropping below 1 at times. This may indicate potential liquidity challenges or difficulties in meeting short-term obligations during these periods.
Overall, it is important for Otis Worldwide Corp to closely monitor its current ratio and ensure it maintains a healthy level to mitigate any financial risks associated with liquidity and short-term obligations.
Peer comparison
Dec 31, 2024