Otter Tail Corporation (OTTR)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 380,250 377,919 390,439 249,708 147,886
Total assets US$ in thousands 3,652,080 3,242,570 2,901,660 2,754,830 2,578,350
Operating ROA 10.41% 11.65% 13.46% 9.06% 5.74%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $380,250K ÷ $3,652,080K
= 10.41%

The operating return on assets (operating ROA) for Otter Tail Corporation has shown a consistent increase over the past five years, indicating an improving operational efficiency and profitability. From 5.74% on December 31, 2020, the operating ROA has steadily risen to 10.41% on December 31, 2024. This upward trend suggests that the company is effectively utilizing its assets to generate operating profits. However, there was a slight dip in 2023, when the operating ROA decreased to 11.65% from the previous year's high of 13.46%. Overall, the increasing operating ROA reflects positively on Otter Tail Corporation's ability to generate returns from its operating activities relative to its total assets.