Otis Worldwide Corp (OTIS)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,973,000 | 6,866,000 | 6,098,000 | 7,249,000 | 5,262,000 |
| Total assets | US$ in thousands | 11,316,000 | 10,117,000 | 9,819,000 | 12,279,000 | 10,710,000 |
| Debt-to-assets ratio | 0.62 | 0.68 | 0.62 | 0.59 | 0.49 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,973,000K ÷ $11,316,000K
= 0.62
The debt-to-assets ratio of Otis Worldwide Corp has shown an upward trend over the past five years, increasing from 0.49 as of December 31, 2020, to 0.62 as of December 31, 2024. This indicates that the company's level of debt relative to its total assets has been rising steadily.
A higher debt-to-assets ratio suggests that a larger proportion of the company's assets is financed through debt, which may imply higher financial risk and leverage. Otis Worldwide Corp's ratio of 0.62 as of December 31, 2024, indicates that approximately 62% of its assets are funded by debt.
It is important to monitor this ratio carefully as an increasing trend could potentially signal a higher reliance on debt financing, which may lead to increased interest payments and financial obligations in the future. Additionally, investors and creditors may view a rising debt-to-assets ratio unfavorably due to concerns about the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2024