Otis Worldwide Corp (OTIS)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 12,224,000 | 12,121,000 | 12,047,000 | 12,096,000 | 12,036,000 | 11,928,000 | 11,801,000 | 11,595,000 | 11,644,000 | 11,698,000 | 11,906,000 | 12,091,000 | 12,060,000 | 10,096,000 | 8,000,000 | 5,736,000 | 3,779,000 |
| Revenue (ttm) | US$ in thousands | 14,217,000 | 14,121,000 | 14,057,000 | 14,139,000 | 14,059,000 | 13,883,000 | 13,708,000 | 13,478,000 | 13,542,000 | 13,664,000 | 13,942,000 | 14,163,000 | 14,162,000 | 14,130,000 | 13,772,000 | 13,086,000 | 12,676,000 |
| Gross profit margin | 85.98% | 85.84% | 85.70% | 85.55% | 85.61% | 85.92% | 86.09% | 86.03% | 85.98% | 85.61% | 85.40% | 85.37% | 85.16% | 71.45% | 58.09% | 43.83% | 29.81% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $12,224,000K ÷ $14,217,000K
= 85.98%
The gross profit margin of Otis Worldwide Corp has shown a significant improvement over the analyzed period. Starting at 29.81% on December 31, 2020, the margin has experienced a steady increase reaching 85.98% by December 31, 2022. This upward trend continued into the following periods, with marginal fluctuations, settling at 85.98% by December 31, 2024.
This consistent growth in gross profit margin can indicate a better control over production costs and an efficient pricing strategy. A higher gross profit margin generally suggests that the company is able to generate more profit from each dollar of sales, which is a positive sign of operational efficiency and potentially sustainable competitive advantage.
However, it is important for investors and stakeholders to consider other factors in conjunction with the gross profit margin to assess the overall financial health and performance of Otis Worldwide Corp.
Peer comparison
Dec 31, 2024