Otis Worldwide Corp (OTIS)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,300,000 | 827,000 | 942,000 | 884,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,641,000 | 3,851,000 | 3,851,000 | 3,912,000 | 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 |
| 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 |
| Quick ratio | 0.77 | 0.58 | 0.61 | 0.76 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,300,000K
+ $—K
+ $3,641,000K)
÷ $7,749,000K
= 0.77
The quick ratio of Otis Worldwide Corp has shown some fluctuation over the past few years, ranging from 0.58 to 0.81. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty covering its current liabilities with its current assets, excluding inventory.
In the most recent data available, the quick ratio as of December 31, 2024, is 0.77, which implies that the company has $0.77 in liquid assets available to cover each $1 of current liabilities. This indicates a slight improvement from the previous quarter but is still relatively low compared to a ratio of 1 or higher, which is generally considered healthy.
Overall, the trend in the quick ratio for Otis Worldwide Corp shows some variability, with periods of improvement and decline. It would be important for investors and stakeholders to monitor this ratio closely to assess the company's liquidity and ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024