Otter Tail Corporation (OTTR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		3.41	3.65	3.38	3.61	3.46	3.14	3.25	3.47	3.73	3.93	3.88	3.72	2.63	2.28	1.24	0.06	0.06	0.07	0.06	0.07
DOH	days	107.03	100.07	107.85	101.21	105.39	116.14	112.24	105.14	97.93	92.98	94.07	98.15	138.85	160.27	294.00	5,817.47	6,528.28	5,580.38	5,843.78	5,324.04

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.41
= 107.03

The days of inventory on hand (DOH) for Otter Tail Corporation have shown fluctuations over the period from March 31, 2020, to December 31, 2024.

Initially, the DOH was quite high, indicating that the company held inventory for an extended period before selling it. However, there was a significant decrease in DOH by June 30, 2021, to only 294 days, which could suggest improved inventory management practices or a shift in the company's operations.

Subsequently, there was a substantial further reduction in DOH, reaching as low as 92.98 days by September 30, 2022. This trend of decreased DOH continued until December 31, 2022, indicating a more efficient inventory turnover and potentially better working capital management.

However, from March 31, 2023, to December 31, 2024, there were slight fluctuations in the DOH, hovering around the 100-day mark. This stability in the DOH figure may indicate that Otter Tail Corporation has found an optimal balance in managing its inventory levels.

Overall, the downward trend in days of inventory on hand reflects positively on the company's efficiency in managing its inventory, potentially leading to lower holding costs, improved cash flow, and better responsiveness to market demands.