Otis Worldwide Corporation — Earnings Quality Grade F
OTIS · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 93 days, change +6 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 1.2%, CFFO 2.1%. Cash follows revenue
Expense Quality
Inventory 10.1% vs COGS 0.6%. Normal
CapEx growth 20.6% is >2x revenue growth 1.2%
SG&A/Gross Profit = 43.3%. Normal
Gross margin 30.3%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.15. Profits backed by cash
FCF $1.4B, FCF/NI = 1.04
Accruals ratio = -2.0%. Low accruals
Cash $1.1B covers only 13% of debt $8.5B
Balance Sheet Health
Goodwill+Intangibles $2.0B = -38% of equity. Manageable
Debt/EBITDA = 3.6x. Healthy
Other assets 13.3% vs revenue 1.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 10% YoY. Normal
Manipulation Score
M-Score = -2.43 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09