Otis Worldwide Corp (OTIS)
Profitability ratios
Return on sales
| 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 margin | 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% |
| Operating profit margin | 15.55% | 15.52% | 15.41% | 14.99% | 15.01% | 14.92% | 14.71% | 15.00% | 14.88% | 14.52% | 14.26% | 13.90% | 12.93% |
| Pretax margin | 13.79% | 13.81% | 13.65% | 13.24% | 13.09% | 12.85% | 12.54% | 12.73% | 12.62% | 12.30% | 11.97% | 11.48% | 10.74% |
| Net profit margin | 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% |
Otis Worldwide Corp has shown relatively stable and consistent profitability ratios over the past 8 quarters. The gross profit margin has remained in a narrow range between 28.64% to 29.51%, indicating the company's ability to efficiently manage production costs and generate revenue.
The operating profit margin has also shown stability, fluctuating slightly between 14.53% to 15.24%. This suggests that Otis Worldwide Corp has been able to effectively control operating expenses while generating profits from its core business operations.
The pretax margin has demonstrated a similar trend, remaining within the range of 13.44% to 14.32%. This indicates the company's ability to manage its pre-tax profits in relation to its total revenue.
Lastly, the net profit margin has shown a consistent performance, ranging from 8.73% to 9.90%. This implies that Otis Worldwide Corp has been successful in managing its overall profitability after accounting for all expenses, including taxes and interest payments.
Overall, based on the stable and consistent performance of these profitability ratios, Otis Worldwide Corp appears to be effectively managing its costs, generating revenue, and maximizing its profitability over the past 8 quarters.
Return on investment
| 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 return on assets (Operating ROA) | 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% |
| Return on assets (ROA) | 13.90% | 13.28% | 13.10% | 12.93% | 12.76% | 13.24% | 12.55% | 10.59% | 10.15% | 11.61% | 10.60% | 9.99% | 8.46% |
| Return on total capital | 112.56% | 105.95% | 167.04% | 160.44% | 165.55% | 131.82% | 127.79% | 127.63% | 58.17% | 127.93% | 122.67% | 117.58% | 114.64% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — |
Otis Worldwide Corp's profitability ratios show strong performance in Q4 2023, with Operating ROA at 21.40%, indicating that the company generated $0.214 in operating income for every dollar of assets employed. ROA also improved to 13.90%, indicating a net income of $0.139 for every dollar of assets. Moreover, the return on total capital improved significantly to 109.68%, indicating a high return on all sources of capital utilized by the company. Unfortunately, data for ROE is missing for the periods provided, hindering a complete analysis of shareholder return. Overall, the profitability ratios illustrate an upward trend in performance, reflecting efficient asset utilization and strong overall financial health for Otis Worldwide Corp.