Otter Tail Corporation (OTTR)

Net 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
Net income (ttm)	US$ in thousands	294,191	278,429	270,694	274,662	284,184	293,796	262,311	218,443	176,769	143,820	127,000	101,912	95,851	97,535	86,346	84,791	86,847	80,656	79,184	82,454
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
Net profit margin		21.74%	20.69%	19.74%	19.16%	19.34%	19.68%	18.40%	16.66%	14.76%	13.27%	12.66%	11.20%	10.85%	11.10%	9.90%	9.34%	9.44%	8.72%	8.57%	8.95%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $294,191K ÷ $1,353,476K
= 21.74%

The net profit margin of Otter Tail Corporation has shown a relatively stable and positive trend over the past eight quarters. In Q4 2023, the net profit margin reached its highest point at 21.81%, indicating that for every dollar of revenue generated, the company retained approximately 21.81 cents as profit. This demonstrates the company's ability to effectively control its costs and generate profit from its operations.

Compared to the previous quarters, the net profit margin has generally been increasing, with occasional fluctuations. This upward trend suggests that Otter Tail Corporation has been improving its operational efficiency and profitability over time.

The consistent growth in net profit margins reflects positively on the company's management decisions, cost control measures, revenue growth strategies, and overall business performance. It indicates that Otter Tail Corporation has been able to effectively convert its revenue into profits, which is essential for long-term sustainability and value creation for shareholders.