Otter Tail Corporation (OTTR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.82% | 61.69% | 62.98% | 58.82% | 100.20% |
| Operating profit margin | 28.59% | 27.92% | 26.57% | 20.85% | 16.74% |
| Pretax margin | 27.59% | 26.86% | 24.33% | 17.77% | 13.14% |
| Net profit margin | 22.68% | 21.74% | 19.34% | 14.76% | 10.85% |
The profitability ratios of Otter Tail Corporation show a fluctuating trend over the years. The gross profit margin decreased from 100.20% in 2020 to 58.82% in 2021, but gradually improved to 61.82% by the end of 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold, with a recovery towards the end of the period.
The operating profit margin, which measures the company's ability to generate profit from its core operations, increased steadily from 16.74% in 2020 to 28.59% in 2024. This reflects a positive trend in the company's operational efficiency and cost management over the years.
The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, also exhibited a consistent growth from 13.14% in 2020 to 27.59% in 2024. This suggests an improvement in the company's ability to generate profit before accounting for taxes.
Furthermore, the net profit margin, which indicates the proportion of revenue that translates into net income, increased from 10.85% in 2020 to 22.68% in 2024. This reveals an enhancement in the company's overall profitability and bottom line performance.
Overall, Otter Tail Corporation's profitability ratios show a mixed performance with some fluctuations but a general positive trend towards improved operational efficiency and profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.41% | 11.65% | 13.46% | 9.06% | 5.74% |
| Return on assets (ROA) | 8.26% | 9.07% | 9.79% | 6.42% | 3.72% |
| Return on total capital | 14.56% | 17.70% | 19.28% | 14.53% | 10.06% |
| Return on equity (ROE) | 18.08% | 20.39% | 23.35% | 17.84% | 11.01% |
Otter Tail Corporation's profitability ratios have shown a positive trend over the past five years. The Operating return on assets (Operating ROA) has increased from 5.74% in 2020 to 10.41% in 2024, indicating the company's ability to generate operating income relative to its assets has improved.
The Return on assets (ROA) has also shown a consistent growth, from 3.72% in 2020 to 8.26% in 2024, suggesting that the company has become more efficient in generating profits from its total assets.
The Return on total capital has exhibited an increasing trend, reaching 19.28% in 2022, before slightly decreasing to 14.56% in 2024. This shows that the company has been effective in generating returns for both equity and debt holders.
The Return on equity (ROE) has shown a similar pattern, increasing from 11.01% in 2020 to 18.08% in 2024. This indicates that the company's ability to generate profits for its shareholders has also improved over the years.
Overall, Otter Tail Corporation's profitability ratios demonstrate a positive growth trajectory, showcasing its ability to effectively utilize its assets and generate returns for both investors and creditors.