Otter Tail Corporation (OTTR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	824,059	823,821	734,014	624,432	689,581
Total assets	US$ in thousands	3,242,570	2,901,660	2,754,830	2,578,350	2,273,600
Debt-to-assets ratio		0.25	0.28	0.27	0.24	0.30

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $824,059K ÷ $3,242,570K
= 0.25

The debt-to-assets ratio of Otter Tail Corporation has shown a declining trend from 0.31 in December 2019 to 0.28 in December 2023. This ratio indicates the proportion of the company's assets financed by debt, with lower values suggesting lower financial risk as the company relies less on borrowing to fund its operations and investments. The decreasing trend in the debt-to-assets ratio over the past five years suggests that the company has been gradually reducing its reliance on debt financing, which can improve its financial stability and flexibility. This trend may reflect prudent financial management decisions by Otter Tail Corporation to maintain a healthier balance between debt and assets, potentially enhancing its long-term financial sustainability.