Otis Worldwide Corp (OTIS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.62 | 0.68 | 0.62 | 0.59 | 0.49 |
| Debt-to-capital ratio | 3.28 | 3.54 | 4.97 | 2.00 | 3.76 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios of Otis Worldwide Corp provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
- The debt-to-assets ratio has increased from 0.49 in 2020 to 0.62 in 2024, indicating that Otis Worldwide Corp is relying more on debt to finance its assets. This trend may suggest a higher level of financial risk as the company's debt obligations grow relative to its assets.
2. Debt-to-capital ratio:
- The debt-to-capital ratio shows fluctuations over the years, varying from 2.00 in 2021 to 4.97 in 2022 before stabilizing at 3.28 in 2024. This ratio measures the proportion of debt in the company's capital structure. A lower ratio indicates less dependence on debt for financing.
3. Debt-to-equity ratio:
- The data provided does not include debt-to-equity ratios for the years analyzed. Typically, this ratio compares a company's total debt to its shareholders' equity, providing insight into the balance between debt and equity financing.
4. Financial leverage ratio:
- Similarly, the financial leverage ratio data is unavailable for the specified years. This ratio evaluates the extent to which a company is using debt to support its operations and growth.
Overall, the increasing debt-to-assets ratio and fluctuations in the debt-to-capital ratio indicate potential shifts in Otis Worldwide Corp's capital structure and debt financing strategies. Monitoring these solvency ratios can help stakeholders assess the company's long-term financial health and risk levels.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.97 | 14.10 | 14.52 | 15.50 | 13.22 |
Based on the provided data, the interest coverage ratio of Otis Worldwide Corp has shown positive trends over the years. The interest coverage ratio, which indicates the company's ability to meet its interest obligations, improved from 13.22 in 2020 to 15.50 in 2021. This continued to rise to 14.52 in 2022 before slightly declining to 14.10 in 2023. The ratio decreased further to 10.97 in 2024, suggesting a potential decrease in the company's ability to cover interest payments. Overall, Otis Worldwide Corp has maintained a relatively healthy interest coverage ratio, ensuring that it can comfortably meet its interest obligations, although the decrease in 2024 warrants attention for potential shifts in the company's financial position.