Otter Tail Corporation (OTTR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 518,479 | 543,960 | 492,424 | 5,153 | 5,919 |
| Payables | US$ in thousands | 94,428 | 104,400 | 135,089 | 120,618 | 120,775 |
| Payables turnover | 5.49 | 5.21 | 3.65 | 0.04 | 0.05 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $518,479K ÷ $94,428K
= 5.49
The payables turnover ratio for Otter Tail Corporation has fluctuated over the past five years. In 2023, the payables turnover ratio was 6.28, indicating that the company paid off its accounts payable 6.28 times during the year. This was a decrease from the previous year, where the ratio was 6.78.
The trend over the five-year period shows an overall improvement in the management of accounts payable, as the ratio has generally increased from 4.03 in 2019 to 6.28 in 2023. A higher payables turnover ratio suggests that the company is efficiently managing its accounts payable by paying off its suppliers more frequently.
A high payables turnover ratio can be indicative of strong supplier relationships and efficient cash management. However, it is essential to consider industry norms and compare the ratio to competitors to gain a better understanding of Otter Tail Corporation's performance in managing its payables.
Peer comparison
Dec 31, 2023