Otter Tail Corporation (OTTR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,353,476	1,345,528	1,371,328	1,433,652	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	919,503	924,998	924,008	921,153
Property, plant and equipment	US$ in thousands	2,418,380	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	1,753,790	1,692,160	1,602,100	1,579,110
Fixed asset turnover		0.56	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	0.52	0.55	0.58	0.58

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,353,476K ÷ $2,418,380K
= 0.56

The fixed asset turnover of Otter Tail Corporation has been relatively stable over the past eight quarters, ranging from 0.56 to 0.68. The ratio measures the efficiency with which the company generates sales revenue from its fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more efficiently to generate sales.

In the most recent quarter, Q4 2023, the fixed asset turnover was 0.56, which suggests that for every $1 invested in fixed assets, the company generated $0.56 in sales. This indicates a slight decrease in efficiency compared to the previous quarter.

Overall, the trend in fixed asset turnover over the past two years shows some fluctuations but remains relatively consistent. Otter Tail Corporation may want to further analyze its fixed asset utilization to ensure optimal efficiency in generating revenue from its fixed assets.