Otis Worldwide (Otis Worldwide) Debt-to-EBITDA : 3.20 (As of Dec. 2023)

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What is Otis Worldwide Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Otis Worldwide's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $149 Mil. Otis Worldwide's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $7,158 Mil. Otis Worldwide's annualized EBITDA for the quarter that ended in Dec. 2023 was $2,284 Mil. Otis Worldwide's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 3.20.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Otis Worldwide's Debt-to-EBITDA or its related term are showing as below:

OTIS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.01 Med: 3.16 Max: 3.55
Current: 3.07

During the past 7 years, the highest Debt-to-EBITDA Ratio of Otis Worldwide was 3.55. The lowest was 0.01. And the median was 3.16.

OTIS's Debt-to-EBITDA is ranked worse than
67.43% of 2303 companies
in the Industrial Products industry
Industry Median: 1.74 vs OTIS: 3.07

Otis Worldwide Debt-to-EBITDA Historical Data

The historical data trend for Otis Worldwide's Debt-to-EBITDA 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.

* Premium members only.

Otis Worldwide Debt-to-EBITDA Chart

Otis Worldwide Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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0.28

3.55

3.37

3.24

3.07

Otis Worldwide Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.34	3.17	2.84	3.12	3.20

Competitive Comparison of Otis Worldwide's Debt-to-EBITDA

For the Specialty Industrial Machinery subindustry, Otis Worldwide's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Otis Worldwide's Debt-to-EBITDA Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Otis Worldwide's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Otis Worldwide's Debt-to-EBITDA falls into.

Otis Worldwide Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Otis Worldwide's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(149	+	7158)	/	2379
	=	3.07

Otis Worldwide's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(149	+	7158)	/	2284
	=	3.20

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Otis Worldwide (NYSE:OTIS) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Otis Worldwide Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Otis Worldwide's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Otis Worldwide (Otis Worldwide) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Otis Worldwide Corp (NYSE:OTIS) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

OTIS:Mexico 4PG:Germany 4PG:Germany O1TI34:Brazil

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.

Executives

Thomas A Bartlett	director	116 HUNTINGTON AVENUE, BOSTON MA 02116
Jill Brannon	director	942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
Tracy A Embree	officer: President, Otis Americas	500 JACKSON STREET, COLUMBUS IN 47201
Viseras Enrique Minarro	officer: President, Otis EMEA	C/O INGERSOLL RAND INC., 525 HARBOUR PLACE DRIVE, SUITE 600, DAVIDSON NC 28036
Fernandez Bernardo Calleja	officer: President, Otis EMEA	1 CARRIER PLACE, FARMINGTON CT 06032
Michael Patrick Ryan	officer: VP, CAO and Controller	10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Sally Loh	officer: President, Otis China	1 CARRIER PLACE, FARMINGTON CT 06032
James F. Cramer	officer: President, Otis Americas	1 CARRIER PLACE, FARMINGTON CT 06032
Nora E. Lafreniere	officer: EVP, Chief GC & Corp. Sec.	ONE CARRIER PLACE, FARMINGTON CT 06032
Montlivault Stephane De	officer: President, Otis Asia Pacific	ONE CARRIER PLACE, FARMINGTON CT 06032
Peiming Zheng	officer: President, Otis China	ONE CARRIER PLACE, FARMINGTON CT 06032
Nelda J Connors	director	BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Anurag Maheshwari	officer: EVP and CFO	1 CARRIER PLACE, FARMINGTON CT 06032
Rahul Ghai	officer: EVP & Chief Financial Officer	GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Abbe Luersman	officer: EVP & CPO	1 CARRIER PLACE, FARMINGTON CT 06032