Otis Worldwide Corp (OTIS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,008,000 | 1,999,000 | 2,207,000 | 2,217,000 | 2,186,000 | 2,155,000 | 2,113,000 | 2,020,000 | 2,033,000 | 2,038,000 | 2,051,000 | 2,125,000 | 2,108,000 | 2,052,000 | 1,964,000 | 1,819,000 | 1,639,000 |
| Total assets | US$ in thousands | 11,316,000 | 10,261,000 | 9,858,000 | 9,791,000 | 10,117,000 | 10,390,000 | 10,135,000 | 9,845,000 | 9,819,000 | 9,342,000 | 9,913,000 | 11,795,000 | 12,279,000 | 10,472,000 | 10,857,000 | 10,505,000 | 10,710,000 |
| Operating ROA | 17.74% | 19.48% | 22.39% | 22.64% | 21.61% | 20.74% | 20.85% | 20.52% | 20.70% | 21.82% | 20.69% | 18.02% | 17.17% | 19.60% | 18.09% | 17.32% | 15.30% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,008,000K ÷ $11,316,000K
= 17.74%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating operating profits from its assets.
Looking at the data provided for Otis Worldwide Corp, we can see that the Operating ROA has shown variations over the quarters from December 2020 to December 2024. The ratio started at 15.30% in December 2020 and showed a consistent increasing trend, reaching a peak of 22.64% in March 2024.
The increase in Operating ROA signals that Otis Worldwide Corp has been effectively utilizing its assets to generate operating income during this period. However, in the last quarter of 2024, the ratio dropped to 17.74% from the previous quarter, indicating a potential decrease in operational efficiency or profitability.
Overall, the trend in Operating ROA for Otis Worldwide Corp shows a positive performance in terms of generating operating income relative to its assets, with some fluctuations observed over time. This metric provides valuable insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024