Otter Tail Corporation (OTTR)

Financial leverage 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
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
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
Financial leverage ratio 2.19 2.18 2.21 2.22 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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,652,080K ÷ $1,668,500K
= 2.19

Otter Tail Corporation's financial leverage ratio has shown a decreasing trend from March 31, 2020, to December 31, 2024, indicating an improvement in the company's financial leverage position over the years. The ratio decreased from 2.88 on March 31, 2020, to 2.19 on December 31, 2024. This suggests that the company has been relying less on debt financing compared to its equity, which is generally considered a positive sign as it indicates lower financial risk and increased stability. Overall, the decreasing trend in the financial leverage ratio reflects a prudent capital structure management by Otter Tail Corporation over the years.