Ormat Technologies Inc (ORA)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		15.94	12.55	20.38	14.02	12.15
DOH	days	22.90	29.07	17.91	26.04	30.05

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.94
= 22.90

The Days of Inventory on Hand (DOH) for Ormat Technologies Inc has shown some fluctuations over the past five years.

As of December 31, 2020, the company held inventory for an average of 30.05 days before selling it. This decreased to 26.04 days by December 31, 2021, indicating an improvement in inventory management efficiency.

By December 31, 2022, the DOH further decreased to 17.91 days, reflecting a significant enhancement in inventory turnover. This could suggest tighter control over inventory levels or faster sales cycles.

However, by December 31, 2023, the DOH increased to 29.07 days, which might indicate a potential increase in inventory levels relative to sales during that period.

As of December 31, 2024, the DOH stood at 22.90 days, showing some improvement compared to the previous year but slightly higher than the optimal level for inventory turnover efficiency.

Overall, the trend in DOH for Ormat Technologies Inc shows variability, with periods of improvement and slight fluctuations. It would be important for the company to continuously monitor and optimize its inventory management practices to ensure efficient use of resources and maintain a healthy balance between inventory levels and sales.