Otis Worldwide Corp (OTIS)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,973,000 | 5,596,000 | 5,526,000 | 6,846,000 | 6,866,000 | 6,822,000 | 6,117,000 | 6,116,000 | 6,098,000 | 6,459,000 | 6,602,000 | 6,694,000 | 7,249,000 | 5,458,000 | 5,457,000 | 5,457,000 | 5,262,000 |
| Total stockholders’ equity | US$ in thousands | -4,848,000 | -4,901,000 | -5,046,000 | -5,024,000 | -4,924,000 | -4,788,000 | -4,852,000 | -4,857,000 | -4,870,000 | -4,913,000 | -4,997,000 | -5,029,000 | -3,625,000 | -3,854,000 | -3,856,000 | -3,910,000 | -3,862,000 |
| Debt-to-capital ratio | 3.28 | 8.05 | 11.51 | 3.76 | 3.54 | 3.35 | 4.84 | 4.86 | 4.97 | 4.18 | 4.11 | 4.02 | 2.00 | 3.40 | 3.41 | 3.53 | 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 quarters from December 31, 2020, to December 31, 2024. The ratio started at 3.76 on December 31, 2020, showing that debt accounted for 3.76% of the company's total capital structure.
The ratio decreased gradually to 2.00 on December 31, 2021, indicating a reduction in the proportion of debt relative to total capital. However, the ratio increased significantly to 4.02 on March 31, 2022, and continued to rise in subsequent quarters, reaching 11.51 on June 30, 2024, highlighting a substantial increase in debt compared to capital.
This sudden surge in the debt-to-capital ratio on June 30, 2024, to 11.51 may raise concerns about the company's increased leverage and financial risk. However, the ratio decreased to 3.28 on December 31, 2024, showing some improvement but remaining relatively elevated compared to earlier periods.
Overall, the trend in the debt-to-capital ratio of Otis Worldwide Corp indicates fluctuations and periods of varying levels of debt utilization in relation to the company's total capital structure. This suggests the need for careful monitoring and evaluation of the company's debt management strategies and overall financial health.
Peer comparison
Dec 31, 2024