Otter Tail Corporation (OTTR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,652,080 | 3,242,570 | 2,901,660 | 2,754,830 | 2,578,350 |
| Total stockholders’ equity | US$ in thousands | 1,668,500 | 1,443,010 | 1,217,320 | 990,777 | 870,966 |
| Financial leverage ratio | 2.19 | 2.25 | 2.38 | 2.78 | 2.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,652,080K ÷ $1,668,500K
= 2.19
The financial leverage ratio for Otter Tail Corporation has shown a consistent downward trend over the past five years, decreasing from 2.96 in 2020 to 2.19 in 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability, as the company is relying more on its equity rather than debt to fund its activities. Otter Tail Corporation's management of its financial leverage ratio reflects a conservative approach to capital structure and may signal a stronger financial position in the long term.
Peer comparison
Dec 31, 2024