Otter Tail Corporation (OTTR)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	134,880	127,050	128,057	131,343
Total assets	US$ in thousands	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	2,273,600	2,180,190	2,114,940	2,104,550
Operating ROA		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%	5.93%	5.83%	6.05%	6.24%

December 31, 2023 calculation

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

To analyze Otter Tail Corporation's operating return on assets (operating ROA) based on the provided data, we observe a fluctuating trend over the eight quarters presented. In Q4 2022, the operating ROA stood at its highest point at 13.46%, reflecting a strong performance in generating operating income relative to total assets.

Subsequently, there was a gradual decline in operating ROA over the following quarters, reaching its lowest point of 10.88% in Q1 2022. The trend then reversed, with a steady increase in operating ROA observed in Q2 and Q3 2022, indicating an improvement in operational efficiency and asset utilization.

However, in Q1 2023, there was a notable spike in the operating ROA to 12.48%, suggesting a potential increase in profitability relative to asset base. The subsequent slight decline in Q2 and Q3 2023, followed by a slight increase in Q4 2023, indicates some variability in the company's ability to generate operating income from its assets during these periods.

Overall, the analysis of Otter Tail Corporation's operating ROA suggests some fluctuations in operational performance and efficiency in converting assets into operating income over the eight quarters reviewed. Further examination of the underlying factors influencing these fluctuations would be required to gain a more in-depth understanding of the company's financial health and operational effectiveness.