Otis Worldwide Corp (OTIS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -4,848,000 | -4,924,000 | -4,870,000 | -3,625,000 | -3,862,000 |
| Debt-to-capital ratio | 3.28 | 3.54 | 4.97 | 2.00 | 3.76 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,973,000K ÷ ($6,973,000K + $-4,848,000K)
= 3.28
The debt-to-capital ratio of Otis Worldwide Corp has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The ratio started at 3.76 in 2020, decreased to 2.00 in 2021, then increased to 4.97 in 2022, before declining to 3.54 in 2023, and further down to 3.28 in 2024. These fluctuations indicate varying levels of debt relative to the total capital employed by the company over the years. It is essential for stakeholders to monitor this ratio closely as it reflects the extent of financial leverage and risk associated with Otis Worldwide Corp's capital structure.
Peer comparison
Dec 31, 2024