Ormat Technologies Inc (ORA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 879,654 | 829,424 | 734,159 | 663,084 | 705,342 |
| Property, plant and equipment | US$ in thousands | — | — | 3,413,870 | 3,042,230 | 479,315 |
| Fixed asset turnover | — | — | 0.22 | 0.22 | 1.47 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $879,654K ÷ $—K
= —
The fixed asset turnover ratio for Ormat Technologies Inc has shown a significant decline over the years. As of December 31, 2020, the ratio stood at 1.47, indicating that the company generated $1.47 in sales for every dollar invested in fixed assets. However, by the end of December 31, 2021, and subsequently in December 31, 2022, the ratio dropped substantially to 0.22. This decline suggests that the company's efficiency in utilizing its fixed assets to generate sales has decreased significantly.
The stagnant values reported for December 31, 2023, and December 31, 2024, marked by dashes, may imply potential issues in the company's asset management or operational performance during those periods.
Overall, the decreasing trend in the fixed asset turnover ratio indicates a need for Ormat Technologies Inc to evaluate and improve its asset utilization efficiency to enhance productivity and profitability in the future.
Peer comparison
Dec 31, 2024