Otter Tail Corporation (OTTR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	230,373	189,214	150,578	104,080	118,996	72,987	61,989	1,371	1,537	1,272	1,480	1,212	1,163	44,904	39,512	7,884	21,199	921	982	891
Short-term investments	US$ in thousands	7,771	7,289	7,505	7,128	5,503	5,084	5,546	6,285	5,432	5,170	5,201	5,141	1,662	-6,372	-5,128	-2,487	1,586	—	—	—
Total current liabilities	US$ in thousands	309,757	310,033	300,562	262,464	237,636	241,853	288,153	373,155	387,699	510,087	483,484	459,429	436,786	299,736	232,923	175,688	189,741	253,187	206,149	200,721
Cash ratio		0.77	0.63	0.53	0.42	0.52	0.32	0.23	0.02	0.02	0.01	0.01	0.01	0.01	0.13	0.15	0.03	0.12	0.00	0.00	0.00

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($230,373K + $7,771K) ÷ $309,757K
= 0.77

The cash ratio of Otter Tail Corporation has shown fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The trend in Otter Tail Corporation's cash ratio indicates an improvement in its liquidity position. The cash ratio has steadily increased from 0.10 in Q1 2022 to 0.85 in Q4 2023. This suggests that the company has been able to build up its cash reserves relative to its short-term obligations over this period.

A cash ratio of 0.85 in Q4 2023 indicates that Otter Tail Corporation had $0.85 of cash and cash equivalents for every $1 of current liabilities. This suggests that the company is in a strong position to meet its short-term financial obligations with its available cash on hand.

Overall, the increasing trend in Otter Tail Corporation's cash ratio reflects a positive liquidity position and a strengthened ability to manage short-term financial commitments.