Otter Tail Corporation (OTTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.69% | 62.98% | 58.82% | 100.20% | -0.64% |
| Operating profit margin | 27.92% | 26.57% | 20.85% | 16.74% | 14.67% |
| Pretax margin | 26.86% | 24.33% | 17.77% | 13.14% | 11.34% |
| Net profit margin | 21.74% | 19.34% | 14.76% | 10.85% | 9.44% |
Otter Tail Corporation has shown a positive trend in profitability ratios over the past five years, indicating an improvement in the company's ability to generate profits relative to its revenue.
The gross profit margin has been steadily increasing from 47.10% in 2019 to 56.07% in 2023. This indicates that Otter Tail Corporation has been able to effectively manage its cost of goods sold and maintain a strong gross profit margin over the years.
The operating profit margin has also shown consistent growth, rising from 14.67% in 2019 to 28.01% in 2023. This suggests that the company has been able to control its operating expenses and improve its operational efficiency.
The pretax margin has followed a similar upward trend, increasing from 11.34% in 2019 to 26.94% in 2023. This indicates that Otter Tail Corporation has been successful in managing its operating expenses and generating higher profits before taxes.
Lastly, the net profit margin has shown significant improvement, increasing from 9.44% in 2019 to 21.81% in 2023. This demonstrates the company's ability to effectively manage its taxes, interest expenses, and other non-operating costs to maximize net income relative to revenue.
Overall, Otter Tail Corporation's profitability ratios reflect positive and improving trends, indicating healthy financial performance and efficient management of costs and expenses over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.65% | 13.46% | 9.06% | 5.74% | 5.93% |
| Return on assets (ROA) | 9.07% | 9.79% | 6.42% | 3.72% | 3.82% |
| Return on total capital | 17.70% | 19.28% | 14.53% | 10.06% | 9.17% |
| Return on equity (ROE) | 20.39% | 23.35% | 17.84% | 11.01% | 11.11% |
Otter Tail Corporation's profitability ratios show a generally positive trend over the five-year period analyzed.
Firstly, the Operating return on assets (Operating ROA) has fluctuated over the years, with a peak in 2022 at 13.46% and a slight decrease to 11.65% in 2023. This ratio indicates how efficiently the company is generating operating profit from its assets.
The Return on assets (ROA) also demonstrates a similar trend, showing an increase from 3.82% in 2019 to 9.07% in 2023. This ratio evaluates the company's overall profitability in relation to its total assets.
Additionally, the Return on total capital has been on an upward trajectory, reaching 16.09% in 2023 compared to 9.13% in 2019. This ratio assesses the returns generated from both equity and debt capital.
Lastly, the Return on equity (ROE) has consistently improved over the years, with a significant increase from 11.11% in 2019 to 20.39% in 2023. This ratio measures the profitability generated for shareholders' equity.
Overall, Otter Tail Corporation has shown positive trends in its profitability ratios, indicating effective management of assets and capital to generate returns for both equity and debt holders.