Otis Worldwide Corp (OTIS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.02% | 85.61% | 85.98% | 85.16% | 29.91% |
| Operating profit margin | 14.08% | 15.55% | 15.01% | 14.88% | 12.97% |
| Pretax margin | 13.67% | 13.79% | 13.09% | 12.62% | 10.77% |
| Net profit margin | 11.53% | 10.00% | 9.25% | 8.80% | 7.17% |
Otis Worldwide Corp has shown a significant improvement in its profitability ratios over the years. The gross profit margin has increased steadily from 29.91% in 2020 to 86.02% in 2024, indicating the company's ability to efficiently manage its production costs.
The operating profit margin also exhibits a general upward trend, albeit with some fluctuations, increasing from 12.97% in 2020 to 14.08% in 2024. This metric reflects Otis Worldwide's operational efficiency in generating profits from its core business activities.
The pretax margin has shown steady growth from 10.77% in 2020 to 13.67% in 2024, highlighting the company's ability to optimize its earnings before accounting for taxes.
Lastly, the net profit margin, which represents the proportion of revenue that translates into net income, has consistently improved from 7.17% in 2020 to 11.53% in 2024. This indicates Otis Worldwide Corp's success in managing its costs and increasing its bottom line profitability.
Overall, the company's profitability ratios demonstrate a positive trend, showing improved efficiency in generating profits and managing costs over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.74% | 21.61% | 20.70% | 17.17% | 15.30% |
| Return on assets (ROA) | 14.54% | 13.90% | 12.76% | 10.15% | 8.46% |
| Return on total capital | 94.49% | 112.56% | 165.55% | 58.17% | 117.07% |
| Return on equity (ROE) | — | — | — | — | — |
Otis Worldwide Corp has shown a positive trend in its profitability ratios over the years based on the provided data.
1. Operating return on assets (Operating ROA) has been increasing steadily from 15.30% in December 2020 to 21.61% in December 2023, indicating that the company is efficiently generating operating profits from its assets.
2. Return on assets (ROA) has also shown a positive trend, increasing from 8.46% in December 2020 to 14.54% in December 2024, reflecting the company's ability to generate profits from its total assets.
3. Return on total capital has fluctuated over the years but generally remained positive, with a notable increase from 58.17% in December 2021 to 165.55% in December 2022. This metric demonstrates how effectively the company is utilizing its total capital to generate returns.
4. Return on equity (ROE) data is missing for all years provided. ROE is a key indicator of a company's profitability in relation to shareholder equity, and its absence prevents a complete assessment of Otis Worldwide Corp's profitability from an equity perspective.
Overall, the increasing trends in Operating ROA, ROA, and Return on total capital suggest that Otis Worldwide Corp has been effectively managing its assets and capital to generate profits. However, the lack of ROE data limits a comprehensive analysis of the company's profitability solely based on these metrics.