Otter Tail Corporation (OTTR)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,329,970	1,353,480	1,469,480	1,197,640	883,171
Receivables	US$ in thousands	147,884	159,665	146,041	176,789	117,174
Receivables turnover		8.99	8.48	10.06	6.77	7.54

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,329,970K ÷ $147,884K
= 8.99

To analyze the receivables turnover of Otter Tail Corporation, we will examine the trend in the receivables turnover ratio over the five-year period from December 31, 2020, to December 31, 2024.

The receivables turnover ratio indicates how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio generally signifies that the company is collecting its receivables more quickly.

In December 2020, Otter Tail Corporation's receivables turnover ratio was 7.54, which means the company collected its receivables approximately 7.54 times during that year. The ratio decreased to 6.77 by December 2021, indicating a slight decline in the efficiency of receivables collection.

However, there was a notable improvement in the receivables turnover ratio in December 2022, reaching 10.06. This increase suggests that Otter Tail Corporation significantly improved its collection efforts during that year.

In the following years, the receivables turnover ratio remained relatively stable. By December 2023, the ratio stood at 8.48, and by December 2024, it increased slightly to 8.99.

Overall, the trend in Otter Tail Corporation's receivables turnover ratio shows some fluctuations, with a notable improvement in 2022. It is essential for the company to monitor this ratio continuously to ensure efficient management of accounts receivable and to maintain a healthy cash flow position.