Otter Tail Corporation (OTTR)

Debt-to-capital 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
Long-term debt	US$ in thousands	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	689,581	590,015	590,063	590,022
Total stockholders’ equity	US$ in thousands	1,443,010	1,402,930	1,328,440	1,263,780	1,217,320	1,184,020	1,116,540	1,047,140	990,777	952,482	915,123	887,866	870,966	852,070	822,055	800,019	781,482	756,505	744,305	740,499
Debt-to-capital ratio		0.36	0.37	0.38	0.39	0.40	0.41	0.42	0.41	0.43	0.38	0.41	0.41	0.42	0.47	0.47	0.48	0.47	0.44	0.44	0.44

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $824,059K ÷ ($824,059K + $1,443,010K)
= 0.36

The debt-to-capital ratio of Otter Tail Corporation has shown some fluctuations over the past eight quarters. The ratio has ranged from 0.38 to 0.45 during this period.

In Q4 2023, the debt-to-capital ratio stood at 0.39, slightly higher than the previous quarter. This indicates that the company's level of debt in relation to its total capital was 39%, suggesting that 39% of the company's capital structure was financed by debt.

The trend of the debt-to-capital ratio fluctuating between 0.38 and 0.45 over the past two years may signal that the company is managing its debt levels cautiously. A lower ratio generally indicates lower financial risk, as it suggests that the company relies less on debt for its capital structure.

However, it is essential to compare this ratio with industry benchmarks and the company's historical data to get a more comprehensive understanding of Otter Tail Corporation's leverage and financial health.