Otter Tail Corporation (OTTR)

Quick 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
Cash	US$ in thousands	294,651	280,020	230,672	238,158	230,373	189,214	150,578	104,080	118,996	72,987	61,989	1,371	1,537	1,272	1,480	1,212	1,163	44,904	39,512	7,884
Short-term investments	US$ in thousands	—	616	1,059	467	7,771	7,289	7,505	7,128	5,503	5,084	5,546	6,285	5,432	5,170	5,201	5,141	1,662	-6,372	-5,128	-2,487
Receivables	US$ in thousands	147,884	188,223	193,972	197,692	159,665	195,162	197,165	177,633	146,041	195,345	227,595	220,683	176,789	181,091	166,150	137,373	117,174	123,154	109,668	122,443
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
Quick ratio		1.43	1.57	1.57	2.09	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

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, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown significant fluctuations over the past few years.

Starting from December 31, 2020, with a quick ratio of 0.27, the company's liquidity position was quite weak, indicating potential difficulty in meeting its short-term liabilities using its quick assets alone. However, there has been a consistent improvement in the quick ratio from March 31, 2021, to September 30, 2022, where it increased steadily to reach above 1, indicating a healthier liquidity position.

From September 30, 2022, to December 31, 2024, the quick ratio remained relatively stable, ranging between 1.13 and 1.43. This indicates that Otter Tail Corporation has been able to maintain a strong ability to cover its short-term obligations using its quick assets during this period.

The quick ratio reaching 2.09 on March 31, 2024, indicates a significant increase in liquidity, possibly due to a combination of higher cash reserves and lower short-term liabilities. However, the subsequent decrease in the quick ratio to 1.43 by December 31, 2024, suggests a potential reduction in liquidity compared to the previous quarter.

Overall, while there have been fluctuations in the quick ratio of Otter Tail Corporation over the years, the general trend shows an improvement in liquidity and the company's ability to meet its short-term obligations with its quick assets.