Otter Tail Corporation (OTTR)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	301,662	304,579	311,074	306,048	294,191	278,429	270,694	274,662	284,184	293,796	262,311	218,443	176,769	143,820	127,000	101,912	95,851	97,535	86,346	84,791
Total assets	US$ in thousands	3,652,080	3,566,740	3,460,780	3,326,030	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
ROA		8.26%	8.54%	8.99%	9.20%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $301,662K ÷ $3,652,080K
= 8.26%

Otter Tail Corporation's return on assets (ROA) has shown a positive trend over the analyzed period from March 31, 2020, to December 31, 2024. The ROA started at 3.68% in March 2020 and gradually increased to 8.26% by December 2024. This indicates that Otter Tail Corporation has been able to effectively utilize its assets to generate profits for its shareholders.

The ROA fluctuated within a certain range during the period, reaching its peak at 10.14% in September 2022 and experiencing a minor dip in the subsequent quarters. However, the overall trend remained positive, reflecting the company's ability to efficiently deploy its assets to generate earnings.

The consistent improvement in ROA suggests that Otter Tail Corporation has been successful in managing its assets efficiently and increasing its profitability over time. Investors and stakeholders may view this performance positively as it indicates the company's effectiveness in generating returns from its asset base.