Otter Tail Corporation (OTTR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 380,250 | 401,166 | 393,551 | 250,592 | 150,504 |
| Interest expense | US$ in thousands | 41,815 | 37,677 | 36,016 | 37,771 | 34,447 |
| Interest coverage | 9.09 | 10.65 | 10.93 | 6.63 | 4.37 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $380,250K ÷ $41,815K
= 9.09
The interest coverage ratio for Otter Tail Corporation has shown a positive trend over the last five years. It increased from 4.37 in December 31, 2020, to 6.63 in December 31, 2021, and continued to improve to 10.93 by December 31, 2022. The ratio slightly dropped to 10.65 by December 31, 2023, and further decreased to 9.09 by December 31, 2024.
Overall, the corporation's ability to cover interest expenses improved significantly from 2020 to 2022, indicating that the company's earnings were more than sufficient to cover its interest payments. Despite small declines in the ratio in 2023 and 2024, the trend shows a healthy financial position regarding the ability to meet its interest obligations.
Peer comparison
Dec 31, 2024