Otter Tail Corporation (OTTR)

Working capital 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
Total current assets US$ in thousands 630,041 570,170 452,752 369,354 234,832
Total current liabilities US$ in thousands 309,790 309,757 237,636 387,699 436,786
Working capital turnover 4.15 5.20 6.83 — —

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,329,970K ÷ ($630,041K – $309,790K)
= 4.15

The working capital turnover ratio for Otter Tail Corporation has shown varying trends over the past five years. In 2020 and 2021, the ratio was not available, which may indicate incomplete data or specific financial circumstances. In 2022, the working capital turnover was calculated at 6.83, suggesting that the company generated approximately $6.83 in revenue for each dollar of working capital invested.

However, the ratio declined to 5.20 in 2023, indicating a decrease in efficiency in utilizing working capital to generate sales. Further, in 2024, the ratio dropped to 4.15, signaling a continued decline in the efficiency of working capital utilization. This downward trend could imply potential inefficiencies in managing working capital or challenges in converting working capital into revenue.

Overall, the fluctuating working capital turnover ratios for Otter Tail Corporation highlight the importance of closely monitoring and managing working capital to optimize operational efficiency and financial performance.