Otter Tail Corporation (OTTR)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 380,250 401,166 393,551 250,592 150,504
Long-term debt US$ in thousands 943,734 824,059 823,821 734,014 624,432
Total stockholders’ equity US$ in thousands 1,668,500 1,443,010 1,217,320 990,777 870,966
Return on total capital 14.56% 17.70% 19.28% 14.53% 10.06%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $380,250K ÷ ($943,734K + $1,668,500K)
= 14.56%

Otter Tail Corporation's return on total capital has shown a positive trend over the years, starting at 10.06% on December 31, 2020, and increasing to 14.53% on December 31, 2021, followed by further improvements to 19.28% on December 31, 2022. Although there was a slight decline to 17.70% on December 31, 2023, the return remained relatively strong. By December 31, 2024, the return on total capital was at 14.56%, indicating a slight decrease from the previous year but still at a favorable level. Overall, the trend suggests that Otter Tail Corporation has been effectively utilizing its total capital to generate returns, with some fluctuations in performance but maintaining a solid financial performance.