Otter Tail Corporation (OTTR)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	3,652,080	3,566,740	3,460,780	3,326,030	3,242,570	3,187,470	3,093,990	2,987,410	2,901,660	2,897,900	2,875,500	2,791,740	2,754,830	2,713,150	2,671,590	2,618,540	2,578,350	2,534,510	2,389,240	2,306,000
Operating ROA		10.41%	10.75%	11.47%	11.79%	11.65%	11.38%	11.56%	12.48%	13.46%	14.03%	12.70%	10.88%	9.06%	7.61%	6.91%	5.84%	5.74%	5.96%	5.68%	5.84%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $380,251K ÷ $3,652,080K
= 10.41%

Otter Tail Corporation's operating return on assets (ROA) has shown fluctuations over the analyzed periods. The trend indicates an overall improvement in the company's operational efficiency and profitability. The operating ROA started at 5.84% as of March 31, 2020, slightly decreased to 5.68% by June 30, 2020, and then increased to 5.96% by September 30, 2020.

The trend continued with varying levels of ROA throughout the following quarters, demonstrating some volatility but with a general upward trajectory. By December 31, 2021, the operating ROA reached 9.06%, marking a significant improvement from the previous periods. The highest operating ROA was recorded on September 30, 2022, at 14.03%, indicating a peak in operational efficiency.

However, in the subsequent quarters, the operating ROA started to decline, albeit remaining above the initial levels. By December 31, 2024, the operating ROA stood at 10.41%. Although the ROA declined from its peak, the company maintained a double-digit operating ROA, showcasing sustained operational performance.

Overall, Otter Tail Corporation's operating ROA showed positive momentum with fluctuations but generally improving performance. Monitoring this ratio over time can provide insights into the company's operational efficiency and effectiveness in utilizing its assets to generate profits.