What does debt-to-equity mean?

How much debt the company carries for every dollar of shareholder equity.

How do you interpret debt-to-equity?

Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.

How does debt-to-equity compare across companies?

Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.

Otis Worldwide OTIS Debt-to-equity

Discontinued — last reported Q4 '19

Debt-to-equity at other companies

OshkoshOSK

0.3×-0.1×

Comfort Systems USAFIX

0.1×0.0×

Chart IndustriesGTLS

1.2×0.0×

AllegionALLE

1.1×-0.3×

FortiveFTV

0.6×+0.2×

TerexTEX

0.6×-0.8×

Other financials

Income statement

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Revenue$3.6B+6.4%

Operating income$539.0M+31.1%

Net income$340.0M+39.9%

EPS (diluted)$0.87+42.6%

Balance sheet

See full

Cash & equivalents$844.0M-56.2%

Total debt$7.5B+3.3%

Total equity-$5.7B-10.8%

Total assets$10.5B-5.7%

Cash flow

See full

Operating cash flow$413.0M+117%

CapEx$33.0M-2.9%

Free cash flow$380.0M+144%

Valuation

See full

Market cap$28.11B-26.8%

Enterprise value$34.79B-20.8%

P/E19×-6.0×

P/S1.9×-0.8×

Profitability

See full

Operating margin15.4%+2.2pp

Net margin10.1%-0.7pp

FCF margin11.4%+1.1pp

Returns & leverage

See full

Return on equity60.1%—

Current ratio0.8×-0.1×

Where this comes from

Calculated from Otis Worldwide’s reported figures.

total debt/total stockholders equity=0.3×

Based on the most recent quarter.

The official record: Otis Worldwide’s 10-K, filed February 3, 2023, on SEC EDGAR. View the filing →

Questions, answered.

What does debt-to-equity mean?: How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?: Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?: Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.