Otter Tail Corporation (OTTR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 294,651 230,373 118,996 1,537 1,163
Short-term investments US$ in thousands 7,771 5,503 5,432 1,662
Total current liabilities US$ in thousands 309,790 309,757 237,636 387,699 436,786
Cash ratio 0.95 0.77 0.52 0.02 0.01

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($294,651K + $—K) ÷ $309,790K
= 0.95

The cash ratio for Otter Tail Corporation has shown a significant improvement over the years, increasing from 0.01 on December 31, 2020, to 0.95 on December 31, 2024. This indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents has strengthened considerably. The upward trend in the cash ratio suggests that Otter Tail Corporation has been managing its cash resources effectively and may have implemented strategies to enhance liquidity and financial stability. The latest cash ratio of 0.95 as of December 31, 2024, indicates that the company has a high level of liquidity, which could be beneficial in times of economic uncertainty or unforeseen financial challenges.