Otter Tail Corporation (OTTR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	86,847	80,656	79,184	82,454
Total assets	US$ in thousands	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	2,273,600	2,180,190	2,114,940	2,104,550
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%

December 31, 2023 calculation

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

Otter Tail Corporation's return on assets (ROA) has shown a decreasing trend over the past few quarters. In Q4 2023, the ROA stood at 9.07%, following a downward trend from Q3 2023 (8.74%) and Q2 2023 (8.75%). Despite a slight increase from Q2 to Q3 in 2023, the ROA has generally been declining since Q3 2022 when it was at its highest point at 10.14%.

Comparing the recent ROA figures to the same quarter in the previous year, there has been a noticeable decrease in performance, with Q4 2023 (9.07%) down from Q4 2022 (9.79%). This downward trend suggests that the company may be experiencing challenges in generating profits relative to its assets. Further analysis of the company's financial statements and operations may be necessary to identify the underlying factors contributing to the declining ROA and to formulate strategies for improvement.