Otter Tail Corporation (OTTR)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	5,919	14,243	14,395	13,714
Payables	US$ in thousands	94,428	103,118	104,661	93,543	104,400	121,995	133,287	119,022	135,089	135,437	131,214	113,073	120,618	189,327	133,967	99,501	120,775	89,360	111,848	100,496
Payables turnover		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	0.05	0.16	0.13	0.14

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $518,479K ÷ $94,428K
= 5.49

Over the past eight quarters, Otter Tail Corporation's payables turnover ratio has shown some fluctuation but generally remained at a healthy level. The payables turnover ratio indicates how many times a company pays off its accounts payable within a specific period.

In Q1 2023, there was a significant increase in the payables turnover ratio to 7.34, suggesting that the company was able to pay off its accounts payable more frequently during that quarter. This could indicate efficient management of its payables and potentially better liquidity.

However, this increase was preceded by a slight decrease in Q4 2022 from the previous quarter, but the ratio remained relatively stable around 6.70 to 6.78 in the quarters leading up to the peak in Q1 2023.

Overall, Otter Tail Corporation's payables turnover ratio has shown a positive trend, reflecting effective management of its accounts payable and indicating a good working capital management strategy. The company seems to be maintaining a balance between paying its suppliers promptly and managing its cash flow efficiently.