Otter Tail Corporation (OTTR)

Receivables 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
Revenue (ttm)	US$ in thousands	1,353,476	1,345,528	1,371,328	1,433,652	1,469,475	1,492,823	1,425,261	1,310,829	1,197,635	1,083,525	1,002,986	910,134	883,171	878,934	871,831	908,278	919,503	924,998	924,008	921,153
Receivables	US$ in thousands	159,665	195,162	197,165	177,633	146,041	195,345	227,595	220,683	176,789	181,091	166,150	137,373	117,174	123,154	109,668	122,443	111,379	120,093	133,712	140,899
Receivables turnover		8.48	6.89	6.96	8.07	10.06	7.64	6.26	5.94	6.77	5.98	6.04	6.63	7.54	7.14	7.95	7.42	8.26	7.70	6.91	6.54

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,353,476K ÷ $159,665K
= 8.48

Otter Tail Corporation's receivables turnover has fluctuated over the past eight quarters, with Q4 2022 showing the highest turnover of 10.11 and Q2 2022 the lowest at 5.98. Overall, the company's receivables turnover ratio has been relatively healthy, indicating that it efficiently collects outstanding receivables from its customers.

A higher receivables turnover ratio suggests that Otter Tail Corporation is effective in converting its credit sales into cash, which is a positive sign of liquidity and efficiency in its operations. The decreasing trend seen in Q3 2023 and Q2 2023 compared to the previous quarters may indicate that the company is taking longer to collect payments from customers, which could potentially impact its cash flow and working capital management.

It is important for Otter Tail Corporation to closely monitor its receivables turnover ratio and take proactive measures to ensure timely collection of outstanding receivables, such as implementing stricter credit policies or improving collections processes. Overall, a steady and consistent receivables turnover ratio is essential for maintaining a healthy cash flow and financial stability for the company.