Otter Tail Corporation (OTTR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 301,662 | 294,191 | 284,184 | 176,769 | 95,851 |
| Total assets | US$ in thousands | 3,652,080 | 3,242,570 | 2,901,660 | 2,754,830 | 2,578,350 |
| ROA | 8.26% | 9.07% | 9.79% | 6.42% | 3.72% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $301,662K ÷ $3,652,080K
= 8.26%
Otter Tail Corporation's Return on Assets (ROA) has shown a positive trend over the past five years. In particular, the ROA has steadily increased from 3.72% as of December 31, 2020, to 8.26% as of December 31, 2024. This indicates that the company has been more effective in generating profits relative to its total assets over this period. However, there was a slight dip in ROA from 2023 to 2024, which may warrant further investigation into the company's efficiency in utilizing its assets to generate earnings. Overall, the improving ROA suggests that Otter Tail Corporation has been making better use of its assets to generate profitability over the years.
Peer comparison
Dec 31, 2024