Otis Worldwide Corp (OTIS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.62 | 0.55 | 0.56 | 0.70 | 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 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios for Otis Worldwide Corp indicate its ability to meet long-term financial obligations:
1. Debt-to-assets ratio has been showing some fluctuation over the years, ranging from 0.49 to 0.70. This ratio measures the proportion of total assets financed by debt, and a higher ratio indicates higher financial risk.
2. Debt-to-capital ratio has shown significant variations, with a peak at 11.51 on June 30, 2024. This ratio reflects the proportion of a company's capital that is debt, and the significant increase in June 2024 suggests a shift towards higher debt financing.
3. Debt-to-equity ratio data is missing in the provided information, which could limit the assessment of the company's reliance on debt to fund its operations.
4. The financial leverage ratio data is also missing, which would have provided insights into the proportion of assets supported by debt.
Overall, the debt metrics for Otis Worldwide Corp paint a picture of fluctuating levels of debt relative to assets and capital, with some periods of significant changes that indicate potential shifts in the company's capital structure and financial risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.97 | 11.17 | 12.68 | 13.44 | 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 |
Based on the provided data for Otis Worldwide Corp, the interest coverage ratio, which measures the company's ability to meet interest obligations on its debt, shows a generally healthy trend over the analyzed period.
The interest coverage ratio for Otis Worldwide Corp has consistently remained above 10, indicating that the company has generated sufficient operating income to cover its interest expenses. A ratio above 1 means the company is generating more than enough earnings to cover its interest payments.
From December 31, 2020, to December 31, 2024, the interest coverage ratio fluctuated between a low of 10.97 on December 31, 2024, and a high of 15.78 on September 30, 2021. Overall, the interest coverage ratio remained relatively stable and healthy throughout the period.
This consistent performance indicates that Otis Worldwide Corp has been effectively managing its interest expenses relative to its operating income, which is a positive sign for investors and creditors. However, it is important to continue monitoring this ratio to ensure the company's financial health remains strong, especially in periods of economic uncertainty or interest rate fluctuations.