Otter Tail Corporation (OTTR)

Debt-to-assets 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
Long-term debt US$ in thousands 943,734 943,663 943,592 943,536 824,059 823,998 823,941 823,882 823,821 823,760 823,699 734,074 734,014 594,619 624,540 624,485 624,432 764,274 724,389 724,318
Total assets US$ in thousands 3,652,080 3,566,740 3,460,780 3,326,030 3,242,570 3,187,470 3,093,990 2,987,410 2,901,660 2,897,900 2,875,500 2,791,740 2,754,830 2,713,150 2,671,590 2,618,540 2,578,350 2,534,510 2,389,240 2,306,000
Debt-to-assets ratio 0.26 0.26 0.27 0.28 0.25 0.26 0.27 0.28 0.28 0.28 0.29 0.26 0.27 0.22 0.23 0.24 0.24 0.30 0.30 0.31

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 general downward trend over the analyzed periods, decreasing from 0.31 as of March 31, 2020, to 0.26 as of December 31, 2024. This indicates that the company has been effectively managing its debt levels in relation to its total assets.

Although there have been slight fluctuations in the ratio over the quarters, it has mostly been within a relatively stable range, suggesting consistent financial prudence in maintaining an appropriate balance between debt and assets.

It is worth noting that the ratio experienced a slight uptick in the most recent period ending December 31, 2024, compared to the previous quarter. This could imply a potential increase in debt or a decrease in assets during that specific quarter, which may warrant further investigation to understand the underlying reasons behind this change.

Overall, the trending decrease in the debt-to-assets ratio of Otter Tail Corporation reflects a positive financial position with a decreasing reliance on debt to finance its operations and investments, indicating a healthier balance sheet structure.