Otis Worldwide Corp (OTIS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -4,924,000 | -4,870,000 | -3,625,000 | -3,862,000 |
| Debt-to-capital ratio | 3.54 | 4.97 | 2.00 | 3.76 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,866,000K ÷ ($6,866,000K + $-4,924,000K)
= 3.54
The debt-to-capital ratio of Otis Worldwide Corp has shown fluctuating trends over the past five years. In 2019, the company had a very low debt-to-capital ratio of 0.02, signaling minimal debt relative to its total capital. However, this ratio increased significantly in 2020 to 2.80, indicating a higher reliance on debt for financing its operations.
In the subsequent years, the debt-to-capital ratio continued to fluctuate, reaching a peak of 3.57 in 2022 before slightly decreasing to 3.49 in 2023. These higher ratios in recent years suggest a relatively higher level of debt within the capital structure of Otis Worldwide Corp, which could potentially indicate increased financial risk and leverage.
It is important for stakeholders to monitor these trends closely to assess the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023