Otter Tail Corporation (OTTR)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,668,500 1,633,330 1,565,650 1,497,460 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
Debt-to-capital ratio 0.36 0.37 0.38 0.39 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

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $943,734K ÷ ($943,734K + $1,668,500K)
= 0.36

The debt-to-capital ratio of Otter Tail Corporation has shown a decreasing trend over the years, indicating a relatively lower reliance on debt to finance its operations and investments. The ratio decreased from 0.48 as of March 31, 2020, to 0.36 as of December 31, 2024. This suggests that the company has been effectively managing its debt levels in relation to its total capital structure. The consistent decrease in the ratio reflects a positive financial management strategy, potentially reducing financial risk and improving overall financial health. It demonstrates a stable and balanced capital structure, which may be perceived positively by investors and creditors.