Discontinued — last reported Q2 '20

Other

Weighted-Average Discount Rate

Otis Worldwide Weighted-Average Discount Rate increased by 9.1% to 3.6% in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 9.1%, from 3.3% to 3.6%. Over 5 years (FY 2020 to FY 2025), Weighted-Average Discount Rate shows an upward trend with a 26.8% CAGR.

Analysis

StatementBalance Sheet Statement
SectionOther
CategoryLeverage
SignalContext dependent
VolatilityStable
First reportedQ4 2019
Last reportedQ2 2020

How to read this metric

An increase reflects higher market interest rates or increased company-specific borrowing costs, which may impact future cash flow projections.

Detailed definition

This is the average interest rate used to calculate the present value of future lease payments for operating and finance...

Peer comparison

Generally aligns with prevailing market interest rates and the company's credit profile.

Metric ID: weighted_average_discount_rate

Historical Data

5 periods
 Q4 '21Q4 '22Q4 '23Q4 '24Q4 '25
Value1.5%3.8%3.4%3.3%3.6%
QoQ Change—+153.3%-10.5%-2.9%+9.1%
YoY Change—+153.3%-10.5%-2.9%+9.1%
Range1.5% – 3.8%
CAGR+140.0%
Avg YoY Growth+37.2%
Median YoY Growth+3.1%

Frequently Asked Questions

What is Otis Worldwide's weighted-average discount rate?
Otis Worldwide (OTIS) reported weighted-average discount rate of 3.6% in Q4 2025.
How has Otis Worldwide's weighted-average discount rate changed year-over-year?
Otis Worldwide's weighted-average discount rate increased by 9.1% year-over-year, from 3.3% to 3.6%.
What is the long-term trend for Otis Worldwide's weighted-average discount rate?
Over 5 years (2020 to 2025), Otis Worldwide's weighted-average discount rate has grown at a 26.8% compound annual growth rate (CAGR), from 1.1% to 3.6%.
What does weighted-average discount rate mean?
The average interest rate used to determine the current value of future lease obligations.