Otis Worldwide Corp (OTIS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 85.98% | 85.84% | 85.70% | 85.55% | 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 | 14.12% | 14.16% | 15.70% | 15.68% | 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 | 13.72% | 13.73% | 13.92% | 13.86% | 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 | 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% |
Otis Worldwide Corp has shown a consistent improvement in its profitability ratios over the analyzed period. The gross profit margin has steadily increased from 29.81% in December 2020 to 85.98% in December 2024, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has shown a positive trend, starting at 12.93% in December 2020 and peaking at 15.70% in June 2024. This suggests that the company has been effectively controlling its operating expenses to enhance profitability.
The pretax margin has also displayed a consistent upward trajectory, rising from 10.74% in December 2020 to 13.72% in December 2024. This indicates that Otis Worldwide Corp has been successful in maximizing its pre-tax earnings relative to its total revenue.
Furthermore, the net profit margin has shown significant improvement, increasing from 7.15% in December 2020 to 11.57% in December 2024. This reflects the company's ability to generate higher net income relative to its total revenue, highlighting its overall profitability growth.
Overall, Otis Worldwide Corp's profitability ratios demonstrate a positive and consistent trend, signaling effective cost management, operational efficiency, and enhanced profitability over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 14.54% | 15.90% | 14.88% | 14.58% | 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 | 94.49% | 287.63% | 459.79% | 121.68% | 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) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Otis Worldwide Corp, the profitability ratios can be analyzed as follows:
1. Operating return on assets (Operating ROA) showed a consistent upward trend from 15.30% in December 2020 to 22.39% in June 2024, with a slight dip to 19.48% in September 2024. This indicates that the company's operating income generated from its assets improved over the period, reflecting efficient asset utilization and operational performance.
2. Return on assets (ROA) also exhibited a positive trend, increasing from 8.46% in December 2020 to 14.88% in June 2024, before decreasing to 14.54% by December 2024. The ROA measures the overall profitability of the company in relation to its total assets, and the increasing trend signifies that the company was able to generate more profit from its assets over time.
3. Return on total capital fluctuated significantly, starting from 114.64% in December 2020, peaking at 459.79% in June 2024, and then dropping to 94.49% by December 2024. This ratio reflects how efficiently the company is utilizing its total capital to generate profit, and the fluctuations indicate potential changes in the company's capital structure and financial performance.
4. It is notable that the Return on Equity (ROE) data is missing for all periods provided. ROE measures the return generated on shareholders' equity, and the absence may be due to various reasons such as the company not having any equity or specific accounting treatments.
Overall, the trend in the profitability ratios for Otis Worldwide Corp indicates improving operational efficiency and asset utilization, which are key factors contributing to the company's profitability and financial performance. The fluctuations in return on total capital suggest changes in capital efficiency and structure over the periods analyzed.