Ormat Technologies Inc (ORA)

Days of inventory on hand (DOH)

		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
Inventory turnover		15.94	12.92	13.62	11.17	12.55	11.77	13.05	10.14	20.38	15.28	13.55	12.77	14.02	14.17	13.91	10.71	12.15	12.87	11.63	13.55
DOH	days	22.90	28.24	26.81	32.69	29.07	31.01	27.97	36.01	17.91	23.88	26.94	28.59	26.04	25.76	26.23	34.07	30.05	28.35	31.39	26.94

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 analyzed periods. The DOH ranged from a low of 17.91 days on December 31, 2022, to a high of 36.01 days on March 31, 2023. Generally, a lower DOH indicates that the company is selling its inventory more quickly, which can be a positive sign.

It is important to note that a decreasing trend in DOH from December 2022 to September 2024 could indicate better inventory management practices, potentially resulting in lower holding costs and improved cash flows. However, the sudden increase in DOH on March 31, 2023, could raise concerns about potential issues with sales forecasting or production efficiency during that period.

Overall, it would be advisable for Ormat Technologies Inc to continue monitoring its DOH closely and aim to strike a balance between managing inventory levels efficiently while ensuring products are readily available to meet customer demand.