Otis Worldwide Corporation (OTIS) FCF Payout Ratio: 40.12%
Is Otis Worldwide Corporation’s FCF payout ratio high or low?
Otis Worldwide Corporation's FCF payout ratio of 40.12% is 20% above its 5-year average of 33.34%, near the high end of its 5-year range (20.05%–44.81%).
7.75% below its 12-month average of 43.49%.
OTIS FCF Payout Ratio Chart
OTIS Average FCF Payout Ratio Chart
OTIS Current vs Average FCF Payout Ratio Chart
OTIS FCF Payout Ratio Metrics
FCF PAYOUT RATIO
40.12%
FCF PAYOUT RATIO AVG TTM
43.49%
FCF PAYOUT RATIO AVG 3Y
38.84%
FCF PAYOUT RATIO AVG 5Y
33.34%
FCF PAYOUT RATIO AVG 10Y
N/A
FCF PAYOUT RATIO AVG 15Y
N/A
FCF PAYOUT RATIO AVG 20Y
N/A
CURRENT VS TTM AVG
-7.75%
CURRENT VS 3Y AVG
+3.30%
CURRENT VS 5Y AVG
+20.33%
CURRENT VS 10Y AVG
N/A
CURRENT VS 15Y AVG
N/A
CURRENT VS 20Y AVG
N/A
Payout Ratio Comparison
FCF Payout Ratio
40.1%
Earnings Payout Ratio
48.2%
Dividend Yield
2.32%
FCF Yield
5.84%
Annual FCF Payout Ratio History
| Year | Free Cash Flow | Dividends Paid | FCF Payout Ratio |
|---|---|---|---|
| 2025 | $1.44B | $647.00M | 44.8% |
| 2024 | $1.44B | $606.00M | 42.2% |
| 2023 | $1.49B | $539.00M | 36.2% |
| 2022 | $1.45B | $465.00M | 32.2% |
| 2021 | $1.59B | $393.00M | 24.7% |
| 2020 | $1.30B | $260.00M | 20.0% |
| 2019 | $1.32B | $0 | 0.0% |
| 2018 | $1.38B | $0 | 0.0% |
| 2017 | $1.32B | $0 | 0.0% |
Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100
FCF payout and earnings payout:
- FCF represents operating cash flow after capital expenditures
- FCF payout compares dividends paid with free cash flow
- FCF payout above 100% means dividends paid exceeded free cash flow for the period
- Earnings payout compares dividends paid with net income
Reading the series: Use the chart and table to compare dividend payments with cash generation over time.
Otis Worldwide Corporation FCF Payout Ratio Formula & Definition
FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Otis Worldwide Corporation FCF Payout Ratio FAQ
- What is the FCF payout ratio for Otis Worldwide Corporation (OTIS)?
- The FCF payout ratio for OTIS stock is 40.12%.
- Is Otis Worldwide Corporation's FCF payout ratio high or low?
- Otis Worldwide Corporation's FCF payout ratio of 40.12% is 20% above its 5-year average of 33.34%, near the high end of its 5-year range (20.05%–44.81%).
- What is the TTM average FCF payout ratio for Otis Worldwide Corporation (OTIS)?
- The TTM average FCF payout ratio for OTIS stock is 43.49%.
- What is the 3Y average FCF payout ratio for Otis Worldwide Corporation (OTIS)?
- The 3Y average FCF payout ratio for OTIS stock is 38.84%.
- What is the 5Y average FCF payout ratio for Otis Worldwide Corporation (OTIS)?
- The 5Y average FCF payout ratio for OTIS stock is 33.34%.
Otis Worldwide Corporation FCF Payout Ratio History
| DATE | FCF PAYOUT RATIO |
|---|---|
| 2025-12-31 | 44.81% |
| 2024-12-31 | 42.17% |
| 2023-12-31 | 36.20% |
| 2022-12-31 | 32.18% |
| 2021-12-31 | 24.65% |
| 2020-12-31 | 20.05% |
About Otis Worldwide Corporation
Otis Worldwide Corporation is a global leader specializing in the manufacturing, installation, and servicing of elevators and escalators, with significant operations in the United States, China, and numerous other international markets. The company's business is organized into two primary divisions: New Equipment and Service. Its New Equipment segment is responsible for the design, fabrication, sale, and fitting of a diverse array of passenger and freight elevators, escalators, and moving walkways, catering to residential and commercial properties, as well as large-scale infrastructure endeavors. Conversely, the Service segment offers extensive maintenance, repair, and modernization services aimed at upgrading existing elevator and escalator systems. Otis maintains a substantial global service footprint, employing approximately 34,000 service technicians across roughly 1,400 branches and offices. The company, established in 1853, is headquartered in Farmington, Connecticut.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Judith F. Marks