Otis Worldwide Corp (OTIS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,939,000 | 1,772,000 | 1,787,000 | 1,361,000 |
| Revenue | US$ in thousands | 14,059,000 | 13,542,000 | 14,162,000 | 12,634,000 |
| Pretax margin | 13.79% | 13.09% | 12.62% | 10.77% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,939,000K ÷ $14,059,000K
= 13.79%
The pretax margin for Otis Worldwide Corp has shown a generally positive trend over the past five years, with incremental improvements year over year. The pretax margin increased from 12.98% in 2019 to 14.29% in 2023. This indicates that the company has been effectively managing its operating expenses relative to its revenue, resulting in a higher proportion of income before taxes for each dollar of revenue generated.
The consistent growth in pretax margin reflects the company's ability to efficiently control costs and improve operational efficiency over time. It suggests that Otis Worldwide Corp has been successful in effectively managing its expenses and optimizing its revenue streams, leading to increased profitability before accounting for taxes.
Overall, the upward trend in pretax margin signals positive financial performance and effective management practices within Otis Worldwide Corp, showcasing its ability to generate higher earnings relative to its revenue base.
Peer comparison
Dec 31, 2023