Otter Tail Corporation (OTTR)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	822,219	786,715	818,777	827,219	834,997	899,222	901,627	931,073	925,516	917,425	854,255	767,636	806,496	1,492,698	1,309,520	1,146,018	884,954	-5,355	-5,606	-6,729
Revenue (ttm)	US$ in thousands	1,329,974	1,345,648	1,367,062	1,362,714	1,355,764	1,347,816	1,372,872	1,434,862	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
Gross profit margin		61.82%	58.46%	59.89%	60.70%	61.59%	66.72%	65.67%	64.89%	62.98%	61.46%	59.94%	58.56%	67.34%	137.76%	130.56%	125.92%	100.20%	-0.61%	-0.64%	-0.74%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $822,219K ÷ $1,329,974K
= 61.82%

The gross profit margin of Otter Tail Corporation has shown fluctuating trends over the past few years, as indicated by the data provided. The company experienced negative gross profit margins in the earlier periods, with percentages reaching as low as -0.74% in March 2020. However, there was a significant turnaround in profitability starting from the end of 2020, with the gross profit margin surging to 100.20% and subsequently increasing to 137.76% by September 2021, indicating a substantial improvement in the company's cost management and revenue generation.

Despite the sharp increase in profitability, the company experienced a slight decline in the gross profit margin in the following periods, with percentages ranging between 58.46% to 66.72% from September 2024 to March 2024. This fluctuation suggests a degree of variability in the company's cost of goods sold relative to its revenue during these periods.

Overall, Otter Tail Corporation has demonstrated an upward trajectory in its gross profit margin in recent years, showcasing an improvement in its operational efficiency and profitability. The company's ability to maintain a healthy gross profit margin indicates its effectiveness in managing production costs and pricing strategies to enhance overall profitability.