Otis Worldwide Corp (OTIS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,866,000 | 6,098,000 | 7,249,000 | 5,262,000 |
| Total assets | US$ in thousands | 10,117,000 | 9,819,000 | 12,279,000 | 10,710,000 |
| Debt-to-assets ratio | 0.68 | 0.62 | 0.59 | 0.49 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,866,000K ÷ $10,117,000K
= 0.68
The debt-to-assets ratio of Otis Worldwide Corp has shown a increasing trend over the last five years, with figures of 0.68, 0.69, 0.59, 0.56, and 0.00 for the years 2023 to 2019, respectively. This indicates that the company's reliance on debt to finance its assets has been growing steadily. A higher debt-to-assets ratio suggests a higher level of financial risk, as more of the company’s assets are funded by debt. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to meet its debt obligations, especially during economic downturns or rising interest rate environments.
Peer comparison
Dec 31, 2023