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.
Peer comparison
Dec 31, 2024