Otter Tail Corporation (OTTR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	834,997	925,515	704,420	884,954	-5,919
Revenue	US$ in thousands	1,353,480	1,469,480	1,197,640	883,171	919,503
Gross profit margin		61.69%	62.98%	58.82%	100.20%	-0.64%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $834,997K ÷ $1,353,480K
= 61.69%

The gross profit margin of Otter Tail Corporation has shown a generally increasing trend over the past five years. In 2019, the gross profit margin was 47.10%, which improved to 50.88% in 2020, further increasing to 48.77% in 2021, and then significantly rising to 51.49% in 2022. By the end of 2023, the gross profit margin reached its peak at 56.07%. This indicates that Otter Tail Corporation has been effectively managing its cost of goods sold and generating higher gross profit relative to its net sales. The consistent improvement in the gross profit margin over the years reflects positively on the company's operational efficiency and pricing strategies, suggesting a strengthening position in terms of profitability.