Otter Tail Corporation (OTTR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,443,010	1,402,930	1,328,440	1,263,780	1,217,320	1,184,020	1,116,540	1,047,140	990,777	952,482	915,123	887,866	870,966	852,070	822,055	800,019	781,482	756,505	744,305	740,499
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $294,191K ÷ $1,443,010K
= 20.39%

Otter Tail Corporation's return on equity (ROE) has shown a declining trend over the past eight quarters, starting from 23.35% in Q4 2022 and decreasing to 20.39% in Q4 2023. This indicates that the company's profitability in generating earnings from shareholders' equity has been gradually decreasing. The ROE peaked at 24.81% in Q3 2022 but has since been on a downward trajectory.

While the ROE has experienced fluctuations, it has generally remained above the 20% mark, suggesting that Otter Tail Corporation has been effectively utilizing its shareholders' equity to generate profits. However, the downward trend in ROE may raise concerns about the company's efficiency in generating returns for its shareholders. Further analysis of the factors influencing this trend, such as changes in the company's profitability, leverage, or asset management, would be necessary to assess the overall health and performance of Otter Tail Corporation.