Otter Tail Corporation (OTTR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,353,480 | 1,469,480 | 1,197,640 | 883,171 | 919,503 |
| Total assets | US$ in thousands | 3,242,570 | 2,901,660 | 2,754,830 | 2,578,350 | 2,273,600 |
| Total asset turnover | 0.42 | 0.51 | 0.43 | 0.34 | 0.40 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,353,480K ÷ $3,242,570K
= 0.42
Total asset turnover measures the efficiency with which Otter Tail Corporation is generating revenue from its total assets. A higher total asset turnover indicates better efficiency in asset utilization.
The trend in Otter Tail Corporation's total asset turnover over the past five years shows some fluctuation. In 2023, the total asset turnover decreased to 0.42 from 0.50 in 2022, indicating a decline in the company's ability to generate revenue from its assets. However, the 2023 ratio is still higher than the ratios in 2020 and 2019, suggesting a certain level of improvement in asset utilization compared to those years.
Overall, Otter Tail Corporation's total asset turnover has displayed some variability in recent years, which could be attributed to changes in business operations, investments in assets, or other factors affecting revenue generation. Further analysis and comparison with industry benchmarks would provide more insight into the company's efficiency in utilizing its assets to generate revenue.
Peer comparison
Dec 31, 2023