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
CategoryOther
SignalContext dependent
VolatilityModerate
First reportedQ4 2019
Last reportedQ2 2020

How to read this metric

Changes reflect shifts in the company's cost of debt or the interest rate environment, impacting the reported size of lease liabilities.

Detailed definition

This is the weighted-average interest rate used to discount future lease payments to their present value on the balance...

Peer comparison

Varies based on the company's credit rating and the prevailing interest rate environment at the time leases were signed.

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 calculate the present value of the company's lease obligations.