Otter Tail Corporation (OTTR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 294,651 | 230,373 | 118,996 | 1,537 | 1,163 |
| Short-term investments | US$ in thousands | — | 7,771 | 5,503 | 5,432 | 1,662 |
| Receivables | US$ in thousands | 147,884 | 159,665 | 146,041 | 176,789 | 117,174 |
| Total current liabilities | US$ in thousands | 309,790 | 309,757 | 237,636 | 387,699 | 436,786 |
| Quick ratio | 1.43 | 1.28 | 1.14 | 0.47 | 0.27 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($294,651K
+ $—K
+ $147,884K)
÷ $309,790K
= 1.43
The quick ratio of Otter Tail Corporation has shown a significant improvement over the years, indicating a strengthening liquidity position.
As of December 31, 2020, the quick ratio was 0.27, reflecting a relatively low level of liquid assets available to cover current liabilities. However, by the end of December 31, 2021, the quick ratio increased to 0.47, suggesting a slight improvement in the company's ability to meet its short-term obligations.
The trend continued to improve in the following years, with the quick ratio reaching 1.14 by December 31, 2022, 1.28 by December 31, 2023, and 1.43 by December 31, 2024. These ratios indicate that Otter Tail Corporation has significantly enhanced its liquidity position, with more than enough liquid assets to cover its current liabilities.
Overall, the increasing trend in the quick ratio reflects a positive liquidity position for Otter Tail Corporation, indicating the company's ability to quickly meet its short-term financial obligations as they come due. This improvement suggests a strengthening financial position and effective management of liquidity over the years.
Peer comparison
Dec 31, 2024