Otter Tail Corporation (OTTR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 943,734 | 824,059 | 823,821 | 734,014 | 624,432 |
| Total assets | US$ in thousands | 3,652,080 | 3,242,570 | 2,901,660 | 2,754,830 | 2,578,350 |
| Debt-to-assets ratio | 0.26 | 0.25 | 0.28 | 0.27 | 0.24 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $943,734K ÷ $3,652,080K
= 0.26
The debt-to-assets ratio of Otter Tail Corporation has shown a gradual upward trend from 0.24 in December 2020 to 0.26 in December 2024. This indicates that the company's reliance on debt to finance its assets has slightly increased over the period. Despite the fluctuations, the ratio has remained relatively stable within the range of 0.24 to 0.28, suggesting that the company has managed its debt levels reasonably well in relation to its total assets. A higher ratio typically indicates higher financial risk, but the moderate levels seen here imply that Otter Tail Corporation has maintained a balanced approach to debt management. It would be important to continue monitoring this ratio to ensure that the company's debt levels remain sustainable and in line with its overall financial health.
Peer comparison
Dec 31, 2024