Otter Tail Corporation (OTTR)

Solvency ratios

	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
Debt-to-assets ratio	0.26	0.26	0.27	0.28	0.25	0.26	0.27	0.28	0.28	0.28	0.29	0.26	0.27	0.22	0.23	0.24	0.24	0.30	0.30	0.31
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
Debt-to-equity ratio	0.57	0.58	0.60	0.63	0.57	0.59	0.62	0.65	0.68	0.70	0.74	0.70	0.74	0.62	0.68	0.70	0.72	0.90	0.88	0.91
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

Otter Tail Corporation's solvency ratios indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has been showing a declining trend over the years, moving from 0.31 in March 2020 to 0.26 by December 2024. This suggests that the company's reliance on debt in relation to its total assets has decreased, which is generally a positive sign of financial stability.

Similarly, the debt-to-capital ratio has also shown a consistent decrease from 0.48 in March 2020 to 0.36 by December 2024. This indicates that the proportion of debt in the company's capital structure has been declining, signaling a stronger financial position.

The debt-to-equity ratio has followed a decreasing trend as well, dropping from 0.91 in March 2020 to 0.57 by December 2024. A lower debt-to-equity ratio implies that the company is relying less on debt financing and has a stronger equity base, which can be seen as a favorable indicator of financial health.

The financial leverage ratio, which measures the extent of a company's financing with debt, has been consistently decreasing from 2.88 in March 2020 to 2.19 by December 2024. This signifies that the company is becoming less leveraged over time, reducing its financial risk and enhancing its solvency position.

Overall, the declining trends in Otter Tail Corporation's solvency ratios suggest an improvement in the company's ability to cover its debt obligations and operate with more financial stability over the years.

Coverage ratios

	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
Interest coverage	9.26	9.61	10.46	10.48	10.03	9.78	9.62	10.22	10.84	11.18	9.93	8.14	6.61	5.48	5.04	4.28	4.29	4.50	4.17	4.24

The interest coverage ratio for Otter Tail Corporation has shown a consistent improvement over the past few years. Starting at 4.24 in March 2020, the ratio gradually increased to 9.93 by June 30, 2022, indicating the company's ability to cover its interest expenses with operating profits has been strengthening. However, there was a slight dip in the ratio to 9.26 by December 31, 2024, although it still remains relatively high. Overall, the trend suggests that Otter Tail Corporation has been effectively managing its interest obligations and improving its financial health in relation to its interest expenses.