Otis Worldwide Corp (OTIS)

Quick ratio

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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash US$ in thousands 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 1,733,000 1,912,000 1,207,000
Short-term investments US$ in thousands
Receivables US$ in thousands 3,753,000 3,678,000 3,717,000 3,588,000 3,551,000 3,299,000 3,400,000 3,480,000 3,429,000 3,538,000 3,530,000 3,464,000 3,470,000 3,171,000 3,082,000 3,109,000
Total current liabilities US$ in thousands 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 6,291,000 5,762,000 5,355,000
Quick ratio 0.78 0.79 0.69 0.69 0.69 0.72 0.73 0.71 0.80 0.80 0.81 0.81 0.79 0.78 0.87 0.81

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 been relatively stable over the past eight quarters, ranging from 0.81 to 0.91. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using only its liquid assets.

In the most recent quarter, Q4 2023, the quick ratio was 0.89, which indicates that for every $1 of current liabilities, Otis Worldwide Corp had $0.89 in quick assets available to cover those liabilities.

Overall, the company's quick ratio has remained slightly below 1, suggesting a relatively tight liquidity position. Investors and creditors may pay attention to any significant changes in the quick ratio from quarter to quarter, as it could indicate changes in the company's ability to meet its short-term obligations.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Otis Worldwide Corp
OTIS
0.78
Emerson Electric Company
EMR
1.23
GE Aerospace
GE
0.73
GE Vernova LLC
GEV
0.11