Otter Tail Corporation (OTTR)

Operating 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
Operating income (ttm) US$ in thousands 380,251 383,507 397,082 392,224 377,919 362,780 357,797 372,810 390,439 406,657 365,052 303,808 249,708 206,508 184,709 152,796 147,886 151,164 135,690 134,600
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
Operating profit margin 28.59% 28.50% 29.05% 28.78% 27.87% 26.92% 26.06% 25.98% 26.57% 27.24% 25.61% 23.18% 20.85% 19.06% 18.42% 16.79% 16.74% 17.20% 15.56% 14.82%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $380,251K ÷ $1,329,974K
= 28.59%

The operating profit margin of Otter Tail Corporation has shown a generally increasing trend over the past few years, starting at 14.82% in March 2020 and reaching 28.59% by December 2024. The company's ability to generate profits from its core business operations has been improving steadily.

There were fluctuations in the operating profit margin over the period under review, with some quarters showing higher margins than others. However, the overall trend indicates a positive trajectory, with significant growth in profitability observed.

The increasing operating profit margin suggests that Otter Tail Corporation has been successful in controlling its operating expenses relative to its revenue, resulting in improved operational efficiency and profitability. This trend is favorable as it indicates the company's ability to generate more profits from each dollar of sales, which can be a positive signal for investors and stakeholders.

However, it is important for the company to continue monitoring and managing its operating costs effectively to sustain and potentially further improve its operating profit margin in the future.