Otter Tail Corporation (OTTR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	294,191	284,184	176,769	95,851	86,847
Total assets	US$ in thousands	3,242,570	2,901,660	2,754,830	2,578,350	2,273,600
ROA		9.07%	9.79%	6.42%	3.72%	3.82%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $294,191K ÷ $3,242,570K
= 9.07%

Over the past five years, Otter Tail Corporation's return on assets (ROA) has shown a fluctuating trend. In 2019 and 2020, the company's ROA was relatively stable at around 3.8%, indicating that for every dollar of assets the company had, it generated approximately $0.038 and $0.037 in net income, respectively.

However, starting from 2021, Otter Tail Corporation experienced an improvement in its ROA performance, reaching 6.42% by the end of that year. This suggests that the company became more efficient in generating earnings from its assets, with a ratio of approximately $0.064 in net income for every dollar of assets.

In the following years, Otter Tail Corporation continued to enhance its ROA, achieving 9.79% in 2022 and 9.07% in 2023. These figures indicate a positive trend of increasing profitability relative to its asset base. The company managed to generate approximately $0.097 and $0.0907 in net income for every dollar of assets in 2022 and 2023, respectively.

Overall, the rising ROA values suggest that Otter Tail Corporation has been effectively utilizing its assets to generate profits, showing improved operational efficiency and potentially effective management of resources. This trend may indicate positive prospects for the company's financial performance and overall growth in the coming periods.