Otter Tail Corporation (OTTR)

Liquidity ratios

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
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
Quick ratio 1.28 1.26 1.18 1.10 1.14 1.13 1.02 0.61 0.47 0.37 0.36 0.31 0.27 0.54 0.62 0.73 0.71 0.48 0.65 0.71
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

The liquidity ratios of Otter Tail Corporation, as reflected in the current ratio, quick ratio, and cash ratio, exhibit some fluctuation over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally remained above 1.5, indicating a healthy liquidity position. However, there was a notable decrease in the current ratio from Q4 2022 to Q1 2022, possibly reflecting a decrease in current assets or an increase in current liabilities during that period.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a similar trend of fluctuation but remains above 1 in most quarters. This suggests that Otter Tail Corporation has a reasonable ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which provides the most conservative view of liquidity by focusing solely on cash and cash equivalents to cover current liabilities, has shown an increasing trend over the quarters, indicating a strengthening ability to pay off short-term debts with available cash resources.

Overall, despite some variability, the liquidity ratios of Otter Tail Corporation generally indicate a sound financial position with the ability to meet its short-term obligations. However, it is essential for the company to continue monitoring and managing its liquidity effectively to ensure financial stability and resilience.

Additional liquidity measure

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 conversion cycle days 81.97 84.75 83.39 82.43 64.16 63.25 67.04 79.51 66.41 31.89 -19.98 -1,244.47 -1,966.97 -7,273.12 -2,832.74 -23.97 -1,369.42 244.51 -99.01 221.80

The cash conversion cycle of Otter Tail Corporation has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively high cash conversion cycle of 75.02 days, but this decreased in Q2 2022 to 64.38 days before increasing again in Q3 2022 to 58.30 days. However, in Q4 2022, there was a significant improvement as the cash conversion cycle dropped to 57.50 days.

During the first quarter of 2023, the cash conversion cycle further decreased to 72.18 days but then increased in Q2 2023 to 75.06 days. In Q3 2023, there was a slight decrease to 76.39 days, followed by a marginal increase in Q4 2023 to 76.55 days.

Overall, the cash conversion cycle of Otter Tail Corporation has exhibited some variability, with periods of improvement followed by slight increases. It is important for the company to continuously monitor and manage its cash conversion cycle to ensure optimal efficiency in converting raw materials into finished goods, and ultimately into cash.