Gross Margin % is calculated as gross profit divided by its revenue. Otter Tail's Gross Profit for the
three
months ended in Dec. 2023 was $120 Mil. Otter Tail's Revenue for the
three
months ended in Dec. 2023 was $314 Mil. Therefore, Otter Tail's Gross Margin % for the quarter that ended in Dec. 2023 was 38.21%.
The historical rank and industry rank for Otter Tail's Gross Margin % or its related term are showing as below:
OTTR'
s Gross Margin % Range Over the Past 10 Years
Min: 27.05 Med: 30.59 Max: 41.89
Current: 41.89
During the past 13 years, the highestGross Margin % of Otter Tail was 41.89%. The lowest was 27.05%. And the median was 30.59%.
OTTR's Gross Margin % is ranked better than 72.46% of 501
companies
in the Utilities - Regulated industry
Industry Median: 28.81
vs OTTR: 41.89
Otter Tail had a gross margin of 38.21% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Otter Tail was 7.50% per year.
Otter Tail Gross Margin % Historical Data
The historical data trend for Otter Tail's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Otter Tail's Gross Margin %
For the Utilities - Diversified subindustry, Otter Tail's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Otter Tail's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Otter Tail's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otter Tail's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Otter Tail (NAS:OTTR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Otter Tail had a gross margin of 38.21% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Otter Tail Gross Margin % Related Terms
Thank you for viewing the detailed overview of Otter Tail's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Otter Tail Corp is a U.S. energy company that primarily operates in the electric (produces and sells electricity), manufacturing (fabricates metal components), and plastics segments (pipes for water uses). The company primarily conducts its operations and acquires the majority of its revenue in the U.S. in the states of Minnesota, South Dakota, and North Dakota. The majority of the company's revenue is derived from the Electric segment and commercial customers, although it generates revenue from residential and industrial customers, as well.
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