Otter Tail Corporation (OTTR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,668,500	1,633,330	1,565,650	1,497,460	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
ROE		18.08%	18.65%	19.87%	20.44%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $301,662K ÷ $1,668,500K
= 18.08%

Otter Tail Corporation's return on equity (ROE) has exhibited fluctuating trends over the past few years. From March 31, 2020, to December 31, 2022, the ROE generally showed an increasing trend, starting at 10.60% and peaking at 24.81% on September 30, 2022.

Subsequently, the ROE experienced a decline, dropping to 18.08% by December 31, 2024. Despite this decrease in the latter part of the period, Otter Tail Corporation's ROE remained relatively healthy and above the industry average.

The company saw significant improvement in profitability as reflected in the ROE, indicating that it effectively utilized its equity to generate earnings for shareholders. However, the recent downtrend in ROE may warrant further investigation to identify potential reasons for the decline and assess the company's long-term profitability prospects.