Otter Tail Corporation (OTTR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	507,755	558,933	547,541	534,417	518,479	446,306	469,701	502,579	543,959	574,607	570,215	542,402	390,348	261,021	127,905	5,799	5,153	5,355	5,606	6,729
Inventory	US$ in thousands	148,885	153,233	161,787	148,194	149,701	142,007	144,441	144,767	145,952	146,376	146,964	145,857	148,490	114,615	103,024	92,426	92,165	81,871	89,754	98,152
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $507,755K ÷ $148,885K
= 3.41

Otter Tail Corporation's inventory turnover has shown a fluctuating trend over the years, as indicated by the data provided. The inventory turnover ratio, which measures how efficiently a company manages its inventory by showing how many times inventory is sold and replaced over a specific period, started at a low level of 0.07 in March 31, 2020.

Since then, there have been fluctuations in the ratio, with some periods showing a slight decrease such as in June 30, 2020, and December 31, 2020 at 0.06. However, starting from June 30, 2021, the inventory turnover ratio started to increase significantly, indicating that the company was able to sell and replace its inventory at a faster pace.

The highest inventory turnover ratio was observed in December 31, 2024, at 3.41, showing a substantial improvement in managing inventory compared to the initial years.

Overall, the increasing trend in the inventory turnover ratio suggests that Otter Tail Corporation has been more efficient in managing its inventory and converting it into sales over time, which is a positive indication of effective inventory management and potentially improved overall operational performance.