Otter Tail Corporation (OTTR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	377,919	390,439	249,708	147,886	134,880
Total assets	US$ in thousands	3,242,570	2,901,660	2,754,830	2,578,350	2,273,600
Operating ROA		11.65%	13.46%	9.06%	5.74%	5.93%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $377,919K ÷ $3,242,570K
= 11.65%

Otter Tail Corporation's operating return on assets (ROA) has exhibited fluctuations over the past five years. The operating ROA for the year ended December 31, 2023, was 11.65%, showing a decrease from the previous year's figure of 13.46%. Despite this decline, the operating ROA remains relatively strong compared to the figures in the preceding years.

Looking back, there was a notable improvement in operating ROA from 2019 to 2020, where it increased from 5.93% to 5.74%. Subsequently, there was a significant jump in 2021, with the operating ROA reaching 9.06%. However, the latest data for 2023 indicates a slight decline in the operating ROA compared to the peak in 2022.

Overall, while the recent operating ROA figure of 11.65% is lower than the previous year's level, it still reflects a healthy return generated from the company's operational activities relative to its total assets. Further analysis of the company's financial performance and operational efficiency is recommended to understand the factors driving these fluctuations in the operating ROA over the years.