Otter Tail Corporation (OTTR)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	294,651	280,020	230,672	238,158	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
Short-term investments	US$ in thousands	—	616	1,059	467	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
Total current liabilities	US$ in thousands	309,790	299,590	270,952	208,474	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
Cash ratio		0.95	0.94	0.86	1.14	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

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 of Otter Tail Corporation has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024.

Initially, the cash ratio was quite low, standing at 0.03 as of March 31, 2020, indicating that the company had limited cash reserves relative to its current liabilities. However, from June 30, 2020, to December 31, 2022, the cash ratio remained relatively stable at low levels ranging between 0.01 and 0.52.

Starting from March 31, 2023, there was a notable improvement in the cash ratio, with an increasing trend observed consistently through the end of the period. The cash ratio surpassed 1.0 as of March 31, 2024, which might indicate that the company had significantly enhanced its cash position compared to its short-term obligations.

The sudden increase in the cash ratio towards the end of the period may signify improved liquidity and the ability of Otter Tail Corporation to cover its short-term liabilities with cash on hand. This upward trend in the cash ratio towards the latter years of the data suggests a stronger financial position for the company in terms of liquidity management.