OTIS Quick Ratio Analysis

The quick ratio measures a company's ability to cover its immediate liabilities using its most liquid assets, and OTIS's current value of 0.58x means it holds $0.58 in cash, marketable securities, and receivables for every $1 of short-term debt.

This is below the sector median of 0.71x, placing OTIS in the 37th percentile among its peers, indicating weaker short-term liquidity relative to the typical company in its industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 6.5% from the prior period's 0.62x to the current 0.58x; the trend direction over the last eight quarters is also not available, so only a single quarter of deterioration can be observed. The combination of a below-median quick ratio and a recent decline implies that OTIS faces increased liquidity risk, as its already thin cash buffer is shrinking, which could heighten vulnerability to short-term obligations. This metric contradicts the overall NEUTRAL verdict, as the weakening liquidity profile suggests a more cautious outlook than a neutral stance might convey.

Frequently Asked Questions

Closest Sector Peers