Otter Tail Corporation (OTTR)

Financial leverage 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
Total assets	US$ in thousands	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	2,273,600	2,180,190	2,114,940	2,104,550
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
Financial leverage ratio		2.25	2.27	2.33	2.36	2.38	2.45	2.58	2.67	2.78	2.85	2.92	2.95	2.96	2.97	2.91	2.88	2.91	2.88	2.84	2.84

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,242,570K ÷ $1,443,010K
= 2.25

Over the past eight quarters, Otter Tail Corporation's financial leverage ratio has been gradually increasing from 2.25 in Q4 2022 to 2.67 in Q1 2022. This indicates that the company has been relying more on debt to finance its operations and growth. A high financial leverage ratio can signify a higher level of financial risk, as the company is more heavily leveraged and may have difficulty meeting its debt obligations in the future. Otter Tail Corporation may need to closely monitor its debt levels and consider strategies to reduce its reliance on debt to improve its financial stability and overall risk profile.