Otis Worldwide Corp (OTIS)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.68 | 0.66 | 0.60 | 0.62 | 0.62 | 0.69 | 0.67 | 0.57 | 0.59 | 0.52 | 0.50 | 0.52 | 0.49 | 0.53 | 0.60 | 0.00 |
| Debt-to-capital ratio | 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 | 3.70 | 3.10 | — |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Otis Worldwide Corp depict its ability to meet its long-term financial obligations and the extent of its leverage. The debt-to-assets ratio has ranged between 0.68 to 0.71 over the past four quarters, indicating that around 68% to 71% of the company's assets are financed by debt. This ratio suggests that Otis Worldwide Corp relies significantly on debt to fund its operations.
The debt-to-capital ratio has fluctuated between 2.83 to 3.57 during the same period, reflecting the proportion of debt in the company's capital structure. This ratio indicates that debt accounts for approximately 283% to 357% of Otis Worldwide Corp's total capital, illustrating a high level of financial leverage.
Unfortunately, the data does not provide information on the debt-to-equity ratio or the financial leverage ratio for a deeper analysis of the company's solvency position. In general, high levels of debt relative to assets and capital raise concerns about the company's financial risk and ability to withstand economic downturns. Investors and analysts may want to monitor these ratios closely to assess Otis Worldwide Corp's solvency and overall financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 14.10 | 15.50 | 15.54 | 14.74 | 14.52 | 14.45 | 14.65 | 15.29 | 15.50 | 15.78 | 14.44 | 12.63 | 13.84 |
The interest coverage ratio for Otis Worldwide Corp has been consistently strong over the past eight quarters, ranging from 13.40 to 14.85. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses by a comfortable margin. The highest interest coverage ratio of 14.85 was achieved in Q1 2022, showing the company's ability to easily meet its interest payment obligations. Overall, the company has demonstrated a consistent and healthy ability to pay off its interest expenses with its operating income.