Otter Tail Corporation (OTTR)

Current 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
Total current assets	US$ in thousands	630,041	650,313	614,128	607,943	570,170	556,750	524,112	454,365	452,752	460,493	471,389	402,391	369,354	334,967	304,901	258,963	234,832	274,916	266,923	256,184
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
Current ratio		2.03	2.17	2.27	2.92	1.84	1.80	1.74	1.73	1.91	1.90	1.64	1.08	0.95	0.66	0.63	0.56	0.54	0.92	1.15	1.46

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 has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The current ratio started at a healthy level of 1.46 in March 2020, indicating that the company had $1.46 in current assets for every $1 in current liabilities. However, there was a decline in the ratio in subsequent periods, reaching a low of 0.54 by December 31, 2020. This decrease may suggest potential liquidity concerns or challenges in meeting short-term obligations.

Subsequently, there was a gradual improvement in the current ratio, with values increasing steadily to 1.84 by December 31, 2023. This trend indicates that Otter Tail Corporation may have strengthened its liquidity position and improved its ability to cover short-term liabilities with its current assets.

Notably, there was a significant spike in the current ratio to 2.92 by March 31, 2024. This sharp increase suggests a substantial increase in current assets relative to current liabilities, signaling an enhanced liquidity position for the company. The current ratio remained relatively high in the subsequent quarters, indicating continued strength in short-term liquidity.

Overall, the trend in Otter Tail Corporation's current ratio demonstrates fluctuations, but the recent increase to levels above 2 indicates improved short-term liquidity and a potentially healthy financial position. It would be important for stakeholders to monitor future changes in the current ratio to assess the company's ability to meet its short-term obligations effectively.