The company's financial structure is characterized by a persistent negative equity position of -$5.7 billion as of 2026Q1 and a current ratio consistently below 1.0, indicating constrained short-term liquidity.
| Total Current Assets | 6.46B | 6.5B | 7.67B | 6.4B | 6.14B | 8.26B | 6.49B | 5.66B | 5.61B | 5.51B |
| Cash & Short-Term Investments | 834M | 1.1B | 2.3B | 1.27B | 1.19B | 1.56B | 1.78B | 1.45B | 1.33B | 1.55B |
| Cash Only | 834M | 1.1B | 2.3B | 1.27B | 1.19B | 1.56B | 1.78B | 1.45B | 1.33B | 1.55B |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 4.67B | 4.39B | 4.13B | 4.25B | 4.02B | 3.78B | 3.61B | 3.39B | 3.38B | 2.54B |
| Days Sales Outstanding | 103.27 | 110.96 | 105.81 | 109.3 | 107.25 | 96.55 | 103.18 | 94.32 | 95.44 | 75.23 |
| Inventory | 669M | 613M | 557M | 612M | 617M | 622M | 659M | 571M | 637M | 1.1B |
| Days Inventory Outstanding | 22.59 | 22.24 | 20.32 | 22.3 | 23.06 | 22.47 | 26.79 | 22.43 | 25.3 | 46.66 |
| Other Current Assets | 290M | 405M | 679M | 259M | 316M | 2.29B | 446M | 251M | 269M | 316M |
| Total Non-Current Assets | 4.08B | 4.15B | 3.65B | 3.72B | 3.68B | 4.02B | 4.22B | 4.03B | 3.52B | 3.58B |
| Property, Plant & Equipment | 1.3B | 1.3B | 1.12B | 1.14B | 1.17B | 1.3B | 1.32B | 1.26B | 678M | 626M |
| Fixed Asset Turnover | 11.35x | 11.13x | 12.70x | 12.43x | 11.72x | 11.00x | 9.69x | 10.44x | 19.05x | 19.69x |
| Goodwill | 1.68B | 1.7B | 1.55B | 1.59B | 1.57B | 1.67B | 1.77B | 1.65B | 1.69B | 1.74B |
| Intangible Assets | 333M | 343M | 311M | 335M | 369M | 419M | 484M | 490M | 569M | 659M |
| Long-Term Investments | 7M | 0 | 10M | 6M | 6M | 8M | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 767M | 817M | 654M | 645M | 566M | 624M | 644M | 636M | 588M | 555M |
| Total Assets | 10.54B | 10.65B | 11.32B | 10.12B | 9.82B | 12.28B | 10.71B | 9.69B | 9.13B | 9.09B |
| Asset Turnover | 1.38x | 1.35x | 1.26x | 1.40x | 1.39x | 1.16x | 1.19x | 1.35x | 1.41x | 1.36x |
| Asset Growth % | -0.12% | -5.86% | 11.85% | 3.03% | -20.03% | 14.65% | 10.56% | 6.04% | 0.51% | - |
| Total Current Liabilities | 7.72B | 7.66B | 7.75B | 6.48B | 6.84B | 6.25B | 6.67B | 5.37B | 5.3B | 4.93B |
| Accounts Payable | 1.98B | 2.14B | 1.88B | 1.88B | 1.72B | 1.56B | 1.45B | 1.33B | 1.35B | 1.3B |
| Days Payables Outstanding | 68.14 | 77.71 | 68.56 | 68.44 | 64.18 | 56.2 | 59.08 | 52.28 | 53.66 | 55.17 |
| Short-Term Debt | 939M | 1.06B | 1.35B | 32M | 670M | 24M | 701M | 34M | 27M | 17M |
| Deferred Revenue (Current) | 5.62B | 0 | 2.6B | 2.7B | 2.66B | 2.67B | 2.54B | 2.27B | 2.33B | 0 |
| Other Current Liabilities | 4.81B | 4.46B | 633M | 656M | 699M | 749M | 747M | 0 | 0 | 2.12B |
| Current Ratio | 0.84x | 0.85x | 0.99x | 0.99x | 0.90x | 1.32x | 0.97x | 1.05x | 1.06x | 1.12x |
| Quick Ratio | 0.75x | 0.77x | 0.92x | 0.89x | 0.81x | 1.22x | 0.87x | 0.95x | 0.94x | 0.89x |
| Cash Conversion Cycle | 57.71 | 55.49 | 57.57 | 63.17 | 66.13 | 62.81 | 70.9 | 64.47 | 67.08 | 66.72 |
| Total Non-Current Liabilities | 8.25B | 8.27B | 8.29B | 8.36B | 7.64B | 9.02B | 7.24B | 1.99B | 1.62B | 0 |
| Long-Term Debt | 6.88B | 7.3B | 6.97B | 6.87B | 6.1B | 7.25B | 5.26B | 5M | 0 | 0 |
| Capital Lease Obligations | 1.58B | 397M | 298M | 292M | 315M | 336M | 367M | 386M | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 974M | 574M | 1.02B | 1.2B | 1.23B | 1.43B | 1.61B | 1.6B | 1.62B | 0 |
| Total Liabilities | 15.98B | 15.92B | 16.04B | 14.84B | 14.48B | 15.26B | 13.91B | 7.36B | 6.92B | 4.93B |
| Total Debt | 8.22B | 8.75B | 8.74B | 7.31B | 7.21B | 7.79B | 6.5B | 565M | 27M | 17M |
| Net Debt | 7.38B | 7.65B | 6.44B | 6.03B | 6.02B | 6.22B | 4.71B | -881M | -1.3B | -1.54B |
| Debt / Equity | -1.51x | - | - | - | - | - | - | 0.24x | 0.01x | 0.01x |
| Debt / EBITDA | 3.37x | 3.79x | 3.99x | 3.07x | 3.24x | 3.37x | 3.55x | 0.28x | 0.01x | 0.01x |
| Net Debt / EBITDA | 3.03x | 3.32x | 2.94x | 2.54x | 2.71x | 2.69x | 2.58x | -0.44x | -0.64x | -0.73x |
| Interest Coverage | 10.77x | 10.88x | 66.16x | 14.98x | 14.48x | 15.50x | 13.43x | 46.51x | 49.59x | 49.93x |
| Total Equity | -5.43B | -5.27B | -4.73B | -4.72B | -4.66B | -2.98B | -3.2B | 2.33B | 2.21B | 2.66B |
| Equity Growth % | -37.56% | -11.48% | -0.17% | -1.2% | -56.3% | 6.78% | -237.62% | 5.01% | -16.82% | - |
| Book Value per Share | -13.95 | -13.39 | -11.69 | -11.38 | -11.03 | -6.92 | -7.37 | 5.37 | 5.11 | 6.10 |
| Total Shareholders' Equity | -5.68B | -5.39B | -4.85B | -4.92B | -4.87B | -3.63B | -3.86B | 1.7B | 1.57B | 1.97B |
| Common Stock | 332M | 333M | 265M | 213M | 162M | 119M | 59M | 2.46B | 2.28B | 2.55B |
| Retained Earnings | -378M | -440M | -978M | -2B | -2.87B | -2.26B | -3.11B | 0 | 0 | 0 |
| Treasury Stock | -4.6B | -4.2B | -3.39B | -2.38B | -1.57B | -725M | 0 | 0 | 0 | 0 |
| Accumulated OCI | -1.03B | -1.09B | -745M | -750M | -592M | -763M | -815M | -758M | -708M | -587M |
| Minority Interest | 245M | 121M | 120M | 204M | 206M | 641M | 661M | 626M | 646M | 698M |
Negative equity position
As reported in financial statements, Otis has maintained a persistent negative equity position over the last ten quarters, with the deficit deepening from -$4.9 billion in 2023Q4 to -$5.7 billion in 2026Q1, signaling a structural imbalance between capital allocation and retained earnings growth.
The consistent negative equity suggests that aggressive share repurchases and dividend distributions have outpaced the company's ability to build book value through retained earnings. Investors should monitor whether this trajectory reflects a deliberate capital-light strategy or a potential long-term erosion of the company's net asset base.
Based on reported figures, total debt has trended upward from $7.3 billion in 2023Q4 to $8.2 billion in 2026Q1, indicating that the company is utilizing external financing to support its ongoing capital return programs despite the absence of positive shareholder equity.
The reliance on debt to fund operations and shareholder returns in the absence of positive equity warrants caution regarding the company's long-term financial flexibility. This leverage profile suggests that the firm's ability to service obligations remains highly dependent on the durability of its recurring service revenue streams.
According to recent SEC filings, the current ratio has remained consistently below 1.0, fluctuating between 0.79 and 0.99 over the past ten quarters, which indicates a limited margin of safety for meeting short-term obligations without relying on continuous access to credit markets.
The persistent sub-unity current ratio suggests that the company operates with a lean working capital profile, which may be intentional given the recurring nature of service contracts. However, this lack of a liquidity buffer leaves the firm vulnerable to sudden disruptions in cash flow or tightening credit conditions.
Analysis of the balance sheet reveals that retained earnings have remained deeply negative throughout the observed period, reaching -$378 million in 2026Q1, which obscures the underlying operational health by masking the impact of historical spin-off accounting and aggressive capital return policies.
The negative retained earnings figure is a critical distortion that makes traditional equity-based valuation metrics difficult to apply. This accounting reality suggests that the company's balance sheet is primarily driven by financial engineering rather than the accumulation of organic earnings, which may misrepresent the firm's true risk profile to investors.
Quick answers to the most common questions about buying OTIS stock.
As of 2025, Otis Worldwide Corporation (OTIS) had total assets of $10.65B including $6.50B in current assets.
Otis Worldwide Corporation (OTIS) carries total debt of $8.75B, offset by $1.10B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Otis Worldwide Corporation (OTIS) has total shareholders' equity (book value) of $-5392.0M ($-13.39 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Otis Worldwide Corporation (OTIS) reported a current ratio of 0.85x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.