Otter Tail Corporation (OTTR)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,329,970	1,353,480	1,469,480	1,197,640	883,171
Total assets	US$ in thousands	3,652,080	3,242,570	2,901,660	2,754,830	2,578,350
Total asset turnover		0.36	0.42	0.51	0.43	0.34

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,329,970K ÷ $3,652,080K
= 0.36

Otter Tail Corporation's total asset turnover has shown some variation over the past five years. The ratio increased from 0.34 in December 31, 2020, to 0.51 in December 31, 2022, indicating that the company generated more revenue relative to its total assets during this period. However, in the subsequent years, the total asset turnover ratio decreased to 0.42 in December 31, 2023, and further dropped to 0.36 by December 31, 2024.

It suggests that the company's efficiency in utilizing its assets to generate sales fluctuated over these years. A lower total asset turnover ratio may indicate inefficiency in asset utilization, whereas a higher ratio typically signifies better asset management. Otter Tail Corporation should further analyze the factors impacting its asset turnover to maintain or improve its efficiency in the future.