Otter Tail Corporation (OTTR)

Quick 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
Cash	US$ in thousands	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	21,199	921	982	891
Short-term investments	US$ in thousands	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	1,586	—	—	—
Receivables	US$ in thousands	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	111,379	120,093	133,712	140,899
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($230,373K + $7,771K + $159,665K) ÷ $309,757K
= 1.28

The quick ratio of Otter Tail Corporation has exhibited fluctuations over the past eight quarters, ranging from 0.69 to 1.36. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.

In the most recent quarter, Q4 2023, the quick ratio of 1.36 suggests that Otter Tail Corporation has improved its ability to meet short-term obligations with quick assets. This may indicate efficient management of current assets and liabilities.

However, it is important to note that the quick ratio was notably lower in Q1 2022 at 0.69, which could have signaled potential liquidity challenges or a temporary strain on the company's ability to meet immediate financial obligations.

Overall, the trend in the quick ratio of Otter Tail Corporation shows some variability but generally indicates a sound liquidity position, with the company maintaining a healthy buffer of liquid assets relative to its current liabilities.