Otis Worldwide Corp (OTIS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,008,000 | 2,186,000 | 2,033,000 | 2,108,000 | 1,639,000 |
| Total assets | US$ in thousands | 11,316,000 | 10,117,000 | 9,819,000 | 12,279,000 | 10,710,000 |
| Operating ROA | 17.74% | 21.61% | 20.70% | 17.17% | 15.30% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,008,000K ÷ $11,316,000K
= 17.74%
The operating return on assets (ROA) of Otis Worldwide Corp has shown a consistent positive trend over the past five years. Starting at 15.30% on December 31, 2020, the operating ROA increased to 17.17% by December 31, 2021. The trend continued upwards, reaching 20.70% by December 31, 2022, and further improving to 21.61% by December 31, 2023.
However, there was a slight dip in the operating ROA to 17.74% by December 31, 2024. Despite this decrease in the last year, the overall performance indicates strong efficiency in generating operating profits relative to the total assets employed. It would be important for stakeholders to delve deeper into the reasons behind the decrease in 2024 to assess the company's operational effectiveness and potential areas for improvement.
Peer comparison
Dec 31, 2024