Otter Tail Corporation (OTTR)

Total 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
Total assets	US$ in thousands	3,242,570	3,187,470	3,093,990	2,987,410	2,901,660	2,897,900	2,875,500	2,791,740	2,754,830	2,713,150	2,671,590	2,618,540	2,578,350	2,534,510	2,389,240	2,306,000	2,273,600	2,180,190	2,114,940	2,104,550
Total asset turnover		0.42	0.42	0.44	0.48	0.51	0.52	0.50	0.47	0.43	0.40	0.38	0.35	0.34	0.35	0.36	0.39	0.40	0.42	0.44	0.44

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,353,476K ÷ $3,242,570K
= 0.42

Otter Tail Corporation's total asset turnover has ranged from 0.42 to 0.51 over the past eight quarters. The total asset turnover ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover ratio generally reflects better asset utilization efficiency, as it means the company is generating more revenue for each dollar of assets it owns.

In the case of Otter Tail Corporation, the trend in total asset turnover has been somewhat fluctuating but generally declining over the quarters, starting from 0.51 in Q3 2022 to 0.42 in Q4 2023. This decline could suggest that the company may be becoming less efficient in utilizing its assets to generate sales revenue. However, it's important to consider other factors such as industry norms, business cycles, and company-specific strategies when interpreting this ratio.

Overall, Otter Tail Corporation should carefully monitor its total asset turnover ratio and investigate the reasons behind any declining trend to ensure optimal asset utilization and sustainable revenue generation in the long run.