Otis Worldwide (BSP:O1TI34) ROCE % : 61.71% (As of Mar. 2024)

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What is Otis Worldwide ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Otis Worldwide's annualized ROCE % for the quarter that ended in Mar. 2024 was 61.71%.

Otis Worldwide ROCE % Historical Data

The historical data trend for Otis Worldwide's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Otis Worldwide ROCE % Chart

Otis Worldwide Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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45.70

43.84

43.44

42.90

64.07

Otis Worldwide Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															68.18	74.47	69.56	57.25	61.71

Otis Worldwide ROCE % Calculation

Otis Worldwide's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	10710.963	/	( ( (51504.583 - 35894.272)	+	(49571.277 - 31745.804) )	/ 2 )
	=	10710.963	/	( (15610.311	+	17825.473)	/ 2 )
	=	10710.963	/	16717.892
	=	64.07 %

Otis Worldwide's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	10836.044	/	( ( (49571.277 - 31745.804)	+	(48757.222 - 31462.376) )	/ 2 )
	=	10836.044	/	( ( 17825.473	+	17294.846 )	/ 2 )
	=	10836.044	/	17560.1595
	=	61.71 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Otis Worldwide (BSP:O1TI34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Otis Worldwide ROCE % Related Terms

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Otis Worldwide (BSP:O1TI34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Otis Worldwide Corp (BSP:O1TI34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

OTIS:USA OTIS:Mexico 4PG:Germany 4PG:Germany

Address

One Carrier Place, Farmington, CT, USA, 06032

Website

https://www.otis.com

Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. In 1854 Otis' founder and namesake Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed. The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.

Otis Worldwide (BSP:O1TI34) Headlines

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