Otter Tail Corporation (OTTR)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,329,974 1,345,648 1,367,062 1,362,714 1,355,764 1,347,816 1,372,872 1,434,862 1,469,475 1,492,823 1,425,261 1,310,829 1,197,635 1,083,525 1,002,986 910,134 883,171 878,934 871,831 908,278
Property, plant and equipment US$ in thousands 178,676 2,604,870 2,538,840 2,459,190 142,430 2,387,260 2,316,250 2,289,490 2,212,720 2,186,640 2,149,920 2,128,340 2,124,600 2,083,220 2,073,010 2,060,790 2,049,270 1,992,800 1,861,690 1,789,370
Fixed asset turnover 7.44 0.52 0.54 0.55 9.52 0.56 0.59 0.63 0.66 0.68 0.66 0.62 0.56 0.52 0.48 0.44 0.43 0.44 0.47 0.51

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,329,974K ÷ $178,676K
= 7.44

Otter Tail Corporation's fixed asset turnover ratio has shown fluctuations over the analyzed period. Starting at 0.51 in March 2020, the ratio decreased to 0.43 by December 2020, indicating a decrease in revenue generated from fixed assets. From there, the ratio increased steadily to reach 0.68 by September 2022, showcasing an improvement in efficiency in utilizing fixed assets to generate revenue.

However, a significant anomaly occurred in December 2023 and December 2024, with the ratio spiking to 9.52 and 7.44, respectively. Such extraordinary values are likely due to irregularities in the financial data or anomalies in the company's operations during those periods.

Overall, Otter Tail Corporation's fixed asset turnover ratio has demonstrated variability, suggesting fluctuations in how effectively the company is utilizing its fixed assets to generate sales during the analyzed period. Additional investigation may be needed to understand the reasons behind the irregular values observed in the ratio.