Otter Tail Corporation (OTTR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 61.69% | 66.83% | 65.75% | 64.94% | 62.98% | 61.46% | 59.94% | 58.56% | 67.34% | 137.76% | 130.56% | 125.92% | 100.20% | -0.61% | -0.64% | -0.74% | -0.64% | -1.54% | -1.56% | -1.49% |
| Operating profit margin | 27.92% | 26.96% | 26.09% | 26.00% | 26.57% | 27.24% | 25.61% | 23.18% | 20.85% | 19.06% | 18.42% | 16.79% | 16.74% | 17.20% | 15.56% | 14.82% | 14.67% | 13.74% | 13.86% | 14.26% |
| 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% |
| Net profit margin | 21.74% | 20.69% | 19.74% | 19.16% | 19.34% | 19.68% | 18.40% | 16.66% | 14.76% | 13.27% | 12.66% | 11.20% | 10.85% | 11.10% | 9.90% | 9.34% | 9.44% | 8.72% | 8.57% | 8.95% |
Otter Tail Corporation has shown consistent improvement in its profitability ratios over the past eight quarters. The gross profit margin has been steadily increasing from 51.49% in Q4 2022 to 56.07% in Q4 2023, indicating efficient cost management and potentially higher pricing power.
The operating profit margin has also shown a positive trend, reaching 28.01% in Q4 2023 from 23.19% in Q1 2022. This suggests that Otter Tail Corporation has been able to control its operating expenses effectively while generating strong revenues.
Similarly, the pretax margin has improved from 20.37% in Q1 2022 to 26.94% in Q4 2023, indicating that the company has been able to increase its profitability before accounting for taxes.
The net profit margin, a key indicator of overall profitability, has also shown a consistent upward trend, reaching 21.81% in Q4 2023 from 16.67% in Q1 2022. This suggests that Otter Tail Corporation has been successful in managing its expenses and generating higher net income relative to its revenues.
Overall, the trend of increasing profitability ratios indicates that Otter Tail Corporation has been performing well and improving its operational efficiency over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.07% | 8.74% | 8.75% | 9.19% | 9.79% | 10.14% | 9.12% | 7.82% | 6.42% | 5.30% | 4.75% | 3.89% | 3.72% | 3.85% | 3.61% | 3.68% | 3.82% | 3.70% | 3.74% | 3.92% |
| Return on total capital | 16.67% | 16.29% | 16.62% | 17.86% | 19.13% | 20.25% | 18.81% | 17.06% | 14.48% | 13.35% | 12.00% | 10.10% | 9.89% | 9.35% | 8.77% | 8.83% | 9.17% | 9.44% | 9.60% | 9.87% |
| Return on equity (ROE) | 20.39% | 19.85% | 20.38% | 21.73% | 23.35% | 24.81% | 23.49% | 20.86% | 17.84% | 15.10% | 13.88% | 11.48% | 11.01% | 11.45% | 10.50% | 10.60% | 11.11% | 10.66% | 10.64% | 11.13% |
The profitability ratios of Otter Tail Corporation over the past eight quarters show a generally positive trend.
- Operating return on assets (Operating ROA) has ranged from 10.88% to 14.03%, with Q1 2022 being the lowest and Q4 2022 the highest. This indicates that the company has been efficient in generating operating income relative to its assets, with a slight decline in recent quarters.
- Return on assets (ROA) has shown a similar pattern, varying between 7.82% and 10.14%. This ratio reflects the overall profitability of the company's assets, and while there has been some fluctuation, the company has maintained a reasonable level of return on its assets.
- Return on total capital has ranged from 15.91% to 20.25%, indicating the company's ability to generate profits from both equity and debt financing. This ratio has shown a consistent upward trend over the periods analyzed, signaling strong financial performance.
- Return on equity (ROE) has also shown improvement, fluctuating between 19.85% and 24.81%. This metric reflects the company's profitability from the perspective of shareholders' equity, and the increasing trend suggests that Otter Tail Corporation has been successful in maximizing returns for its equity investors.
Overall, Otter Tail Corporation has demonstrated solid profitability performance, with improving returns on assets, capital, and equity over the quarters analyzed.