Otis Worldwide Corp (OTIS)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,645,000 | 1,631,000 | 1,467,000 | 1,428,000 | 1,406,000 | 1,380,000 | 1,328,000 | 1,273,000 | 1,253,000 | 1,237,000 | 1,244,000 | 1,249,000 | 1,246,000 | 1,216,000 | 1,151,000 | 1,049,000 | 906,000 |
| 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 |
| Net profit margin | 11.57% | 11.55% | 10.44% | 10.10% | 10.00% | 9.94% | 9.69% | 9.45% | 9.25% | 9.05% | 8.92% | 8.82% | 8.80% | 8.61% | 8.36% | 8.02% | 7.15% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,645,000K ÷ $14,217,000K
= 11.57%
Net profit margin indicates the percentage of revenue that translates into profit after all expenses have been deducted. For Otis Worldwide Corp, the net profit margin has been gradually increasing over the years, showing a positive trend.
Starting at 7.15% in December 31, 2020, the net profit margin improved consistently to reach 11.57% by December 31, 2024. This increase demonstrates the company's ability to efficiently control costs and generate higher profitability from its operations.
The steady rise in net profit margin reflects positively on Otis Worldwide Corp's operational efficiency and overall financial performance. It suggests that the company is effectively managing its expenses and optimizing its revenue generation. Financial stakeholders and investors may view this trend favorably as higher net profit margins usually indicate a healthier and more sustainable business.
It would be essential for Otis Worldwide Corp to continue monitoring and improving its net profit margin to ensure long-term profitability and competitiveness in the market.
Peer comparison
Dec 31, 2024