Otter Tail Corporation (OTTR)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	363,489	343,730	333,781	343,687	357,535	370,611	328,437	266,877	212,822	170,864	151,317	121,729	116,057	119,612	104,262	102,242	104,288	94,944	95,895	98,876
Revenue (ttm)	US$ in thousands	1,353,476	1,345,528	1,371,328	1,433,652	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	919,503	924,998	924,008	921,153
Pretax margin		26.86%	25.55%	24.34%	23.97%	24.33%	24.83%	23.04%	20.36%	17.77%	15.77%	15.09%	13.37%	13.14%	13.61%	11.96%	11.26%	11.34%	10.26%	10.38%	10.73%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $363,489K ÷ $1,353,476K
= 26.86%

Otter Tail Corporation's pretax margin has shown a consistent upward trend over the past eight quarters. The company's pretax margin increased from 20.37% in Q1 2022 to 26.94% in Q4 2023. This upward trajectory indicates an improvement in the company's ability to generate earnings before taxes relative to its revenue.

The pretax margin peaked at 26.94% in Q4 2023, reflecting the highest level of profitability during the period analyzed. This could suggest successful cost management strategies, increased efficiency in operations, or higher revenue generation.

Overall, Otter Tail Corporation's pretax margin performance indicates a positive trend in the company's financial health and operational efficiency, showcasing its ability to generate profit before accounting for taxes. It would be beneficial for the company to continue monitoring and enhancing its operations to sustain or further improve this metric in the future.