Otter Tail Corporation (OTTR)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	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	-5,919	-14,243	-14,395	-13,714
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
Gross profit margin		61.69%	66.83%	65.75%	64.94%	62.98%	61.46%	59.94%	58.56%	67.34%	137.76%	130.56%	125.92%	100.20%	-0.61%	-0.64%	-0.74%	-0.64%	-1.54%	-1.56%	-1.49%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $834,997K ÷ $1,353,476K
= 61.69%

The gross profit margin of Otter Tail Corporation has been showing a positive trend over the past eight quarters, indicating an improvement in the company's efficiency in managing production costs. The margin has steadily increased from 46.70% in Q1 2022 to 56.07% in Q4 2023. This suggests that Otter Tail Corporation has been successful in effectively controlling its costs of goods sold and generating a higher percentage of revenue as gross profit. Overall, the consistent growth in the gross profit margin indicates a positive financial performance for the company in terms of profitability and operational effectiveness.