Otter Tail Corporation (OTTR)

Net 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
Net income (ttm)	US$ in thousands	301,662	304,579	311,074	306,048	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
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
Net profit margin		22.68%	22.63%	22.75%	22.46%	21.70%	20.66%	19.72%	19.14%	19.34%	19.68%	18.40%	16.66%	14.76%	13.27%	12.66%	11.20%	10.85%	11.10%	9.90%	9.34%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $301,662K ÷ $1,329,974K
= 22.68%

The net profit margin of Otter Tail Corporation has shown a consistent upward trend over the past few quarters, reflecting improved profitability. The margin increased from 9.34% in March 2020 to 22.68% in December 2024. This upward trend indicates that the company has been effectively managing its expenses relative to its revenue, resulting in a higher proportion of revenue turning into net income.

The steady growth in net profit margin suggests that Otter Tail Corporation has been successful in controlling costs, increasing operational efficiency, or possibly benefiting from pricing strategies. Investors and stakeholders may view this positive trend as a sign of a healthy and sustainable business operation. However, it is important to continue monitoring the net profit margin in future periods to ensure that the company can maintain or improve its profitability levels.