Otter Tail Corporation (OTTR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.03 | 1.84 | 1.91 | 0.95 | 0.54 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $630,041K ÷ $309,790K
= 2.03
The current ratio of Otter Tail Corporation, representing its ability to meet short-term obligations with its current assets, has shown a notable improvement over the years. From a low of 0.54 in December 2020, the ratio has steadily climbed to 0.95 in December 2021, signaling a stronger position in meeting its short-term liabilities. This positive trend continued in the following years, with the ratio reaching 1.91 in December 2022, 1.84 in December 2023, and further improving to 2.03 in December 2024.
The current ratio surpassing 1 indicates that Otter Tail Corporation has more current assets than current liabilities, reflecting a healthy liquidity position. The company appears to have enhanced its ability to cover its short-term debts as of the most recent reporting period, which bodes well for its financial health and operational stability.
Peer comparison
Dec 31, 2024