Otter Tail Corporation (OTTR)

Number of days of payables

		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
Payables turnover		4.47	6.29	4.31	5.80	5.49	4.33	4.49	5.37	5.21	4.71	4.28	4.56	2.89	1.93	0.97	0.05	0.04	0.03	0.04	0.07
Number of days of payables	days	81.64	58.04	84.61	62.95	66.48	84.33	81.33	67.94	70.05	77.49	85.32	80.09	126.32	189.39	374.44	7,117.03	8,543.68	12,904.64	8,722.43	5,397.22

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.47
= 81.64

The number of days of payables for Otter Tail Corporation has shown significant fluctuations over the years, from as high as 12,904.64 days on September 30, 2020, to as low as 58.04 days on September 30, 2024. This ratio measures how many days it takes for the company to pay its suppliers or vendors, indicating the efficiency of the company's accounts payable management.

A decreasing trend in the number of days of payables can suggest that the company is paying its suppliers more quickly, which could be a signal of strong liquidity or perhaps stricter payment terms negotiated with suppliers. Conversely, an increasing trend could indicate potential financial distress, cash flow issues, or changes in the company's supplier relationships.

Otter Tail Corporation's number of days of payables has demonstrated volatility, with fluctuations above and below the average term of payment. The recent decrease in days of payables from over 1,000 days to around 60-80 days in the past few quarters could indicate proactive cash management or changes in the company's procurement processes.

Further analysis and comparison with industry benchmarks or historical data would be necessary to fully assess the implications of these changes in the number of days of payables for Otter Tail Corporation.