Otis Worldwide Corp (OTIS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,274,000 | 1,189,000 | 1,565,000 | 1,782,000 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | 3,753,000 | 3,551,000 | 3,429,000 | 3,470,000 |
| Total current liabilities | US$ in thousands | 6,479,000 | 6,843,000 | 6,247,000 | 6,673,000 |
| Quick ratio | 0.78 | 0.69 | 0.80 | 0.79 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,274,000K
+ $—K
+ $3,753,000K)
÷ $6,479,000K
= 0.78
The quick ratio of Otis Worldwide Corp has fluctuated over the past five years. The company's ability to meet its short-term obligations with its most liquid assets has been mixed. In 2023, the quick ratio improved to 0.89 from 0.81 in 2022, indicating a stronger ability to cover immediate liabilities with liquid assets. However, the quick ratio was higher in 2021 at 0.92 and 2019 at 0.95, suggesting a better liquidity position in those years.
On the other hand, the quick ratio decreased in 2020 to 0.87, reflecting a slightly weaker ability to meet short-term obligations with liquid assets compared to the surrounding years. Overall, Otis Worldwide Corp's quick ratio trend indicates some variability in liquidity management over the period analyzed. Further analysis of the company's asset composition and short-term debt levels may provide additional insights into its liquidity position.
Peer comparison
Dec 31, 2023