Otter Tail Corporation (OTTR)
Activity ratios
Short-term
Turnover ratios
| 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 |
| Receivables turnover | 8.99 | 7.15 | 7.05 | 6.89 | 8.49 | 6.91 | 6.96 | 8.08 | 10.06 | 7.64 | 6.26 | 5.94 | 6.77 | 5.98 | 6.04 | 6.63 | 7.54 | 7.14 | 7.95 | 7.42 |
| 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 |
| Working capital turnover | 4.15 | 3.84 | 3.98 | 3.41 | 5.21 | 5.46 | 6.14 | 7.48 | 6.83 | 6.83 | 7.78 | 44.84 | — | — | — | — | — | — | 25.64 | 11.28 |
The activity ratios for Otter Tail Corporation provide insights into the efficiency of the company's operations over time.
1. Inventory Turnover: The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a specific period. Otter Tail Corporation's inventory turnover has shown significant improvement from 0.07 in March 2020 to 3.41 in December 2024. This indicates that the company is managing its inventory more efficiently and selling its products at a faster rate.
2. Receivables Turnover: The receivables turnover ratio measures how many times a company collects its accounts receivable during a certain period. Otter Tail Corporation's receivables turnover fluctuated but generally increased from 7.42 in March 2020 to 8.99 in December 2024. This suggests that the company is collecting its outstanding receivables more effectively over time.
3. Payables Turnover: The payables turnover ratio reveals how quickly a company pays its suppliers. Otter Tail Corporation's payables turnover increased steadily from 0.07 in March 2020 to 4.47 in December 2024. This indicates that the company is managing its payables more efficiently and extending its payment periods effectively.
4. Working Capital Turnover: The working capital turnover ratio reflects how efficiently a company is using its working capital to generate sales. Otter Tail Corporation's working capital turnover varied over the years but showed improvements, reaching 4.15 in December 2024. This suggests that the company is effectively utilizing its working capital to support its operations and generate revenue.
In summary, the activity ratios of Otter Tail Corporation demonstrate a positive trend, indicating an enhancement in operational efficiency and effective management of inventory, receivables, payables, and working capital over the analyzed period.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (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 |
| Days of sales outstanding (DSO) | days | 40.59 | 51.05 | 51.79 | 52.95 | 42.99 | 52.85 | 52.42 | 45.19 | 36.27 | 47.76 | 58.29 | 61.45 | 53.88 | 61.00 | 60.46 | 55.09 | 48.43 | 51.14 | 45.91 | 49.20 |
| 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 |
Otter Tail Corporation's activity ratios provide insights into how efficiently the company manages its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH): The trend in Otter Tail Corporation's DOH ratio shows fluctuations over the periods mentioned. The company has notably reduced its days of inventory on hand from a high of 6,528.28 days on December 31, 2020, to a low of 92.98 days on September 30, 2022. This indicates that the company has improved its inventory management efficiency by optimizing its inventory levels and turnover.
2. Days of Sales Outstanding (DSO): Otter Tail Corporation's DSO ratio also demonstrates variability over the analyzed periods. The company experienced a decrease in days of sales outstanding from a high of 61.45 days on March 31, 2022, to a low of 36.27 days on December 31, 2022. A lower DSO implies that the company is effectively collecting revenue from its sales, possibly due to efficient credit and collection practices.
3. Number of Days of Payables: The number of days of payables for Otter Tail Corporation reveals a fluctuating pattern, signifying changes in the company's payment policies and relationships with suppliers. The company reduced its payables days from 12,904.64 days on September 30, 2020, to 58.04 days on September 30, 2024, indicating a significant improvement in managing its payables and possibly negotiating better terms with suppliers.
Overall, the data suggests that Otter Tail Corporation has made efforts to enhance its inventory management, receivables collection, and payables efficiency over the analyzed periods. A downward trend in DOH and DSO ratios, coupled with a decrease in payables days, indicates a positive direction in the company's operational effectiveness and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.44 | 0.52 | 0.54 | 0.55 | 9.52 | 0.56 | 0.59 | 0.63 | 0.66 | 0.68 | 0.66 | 0.62 | 0.56 | 0.52 | 0.48 | 0.44 | 0.43 | 0.44 | 0.47 | 0.51 |
| Total asset turnover | 0.36 | 0.38 | 0.40 | 0.41 | 0.42 | 0.42 | 0.44 | 0.48 | 0.51 | 0.52 | 0.50 | 0.47 | 0.43 | 0.40 | 0.38 | 0.35 | 0.34 | 0.35 | 0.36 | 0.39 |
The fixed asset turnover ratio for Otter Tail Corporation has fluctuated over the years, indicating changes in how efficiently the company is utilizing its fixed assets to generate sales. The ratio ranged from 0.44 to 0.68 from March 31, 2021, to September 30, 2022, showing a generally increasing trend during this period. However, there was a significant spike to 9.52 on December 31, 2023, which could be an outlier or indicative of a major change in the company's operations or reporting.
On the other hand, the total asset turnover ratio, which measures the overall efficiency of a company in generating revenue from its total assets, remained relatively stable compared to the fixed asset turnover ratio. The ratio ranged from 0.34 to 0.52 from December 31, 2020, to September 30, 2022, before showing a slight decline towards 0.36 by December 31, 2024.
Overall, the trends in both ratios suggest that Otter Tail Corporation may have experienced some operational changes or shifts in asset management efficiency over the analyzed period. It's essential for stakeholders to further investigate the significant fluctuations to gain a deeper understanding of the company's performance and strategy.