Ormat Technologies Inc (ORA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.56 | 3.80 | 4.49 | 1.79 | 2.00 | |
| DSO | days | 142.75 | 96.11 | 81.33 | 204.27 | 182.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.56
= 142.75
Ormat Technologies Inc's days of sales outstanding (DSO) have shown fluctuations over the past five years. The DSO was the highest at 119.52 days at the end of 2023, indicating that, on average, it took the company about 119.52 days to collect its accounts receivable. This represents an increase compared to the previous year, where the DSO was 88.32 days.
In 2022, the DSO decreased to 88.32 days, suggesting an improvement in the company's collections process compared to 2021 when the DSO was 83.00 days. However, in 2020 and 2019, the DSO was higher at 99.20 days and 105.16 days, respectively.
Overall, the trend in the DSO indicates some variability in Ormat Technologies Inc's ability to collect accounts receivable efficiently. The increase in 2023 compared to 2022 may raise concerns about the company's credit policy or effectiveness of its collections efforts. Further analysis of the underlying reasons for these fluctuations would provide better insights into the company's overall financial performance and working capital management.
Peer comparison
Dec 31, 2023