Otter Tail Corporation (OTTR)

Current 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
Total current assets	US$ in thousands	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	254,860	237,659	263,566	273,701
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
Current ratio		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	1.34	0.94	1.28	1.36

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $570,170K ÷ $309,757K
= 1.84

Based on the data provided for Otter Tail Corporation's current ratio over the past eight quarters, we observe fluctuations ranging from 1.08 to 1.91. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

During Q1 2022, the current ratio was notably low at 1.08, indicating potential liquidity concerns, which could lead to difficulties in meeting immediate debt obligations. However, a significant improvement was observed in subsequent quarters, with the ratio gradually increasing to 1.91 by Q4 2022, signaling a stronger short-term liquidity position.

In the following quarters of 2023, the current ratio remained relatively stable, ranging between 1.73 and 1.84. These ratios suggest that Otter Tail Corporation's short-term liquidity position has been consistently adequate, with current assets generally sufficient to cover current liabilities.

Overall, while fluctuations in the current ratio were observed over the period analyzed, the company has generally maintained a healthy liquidity position. It is essential for stakeholders to continue monitoring the current ratio to ensure the company's ability to meet its short-term financial obligations.