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