Ormat Technologies Inc (ORA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,330,450	1,202,510	1,097,640	705,342	746,044
Property, plant and equipment	US$ in thousands	2,998,950	2,493,460	2,294,970	2,099,050	1,971,420
Fixed asset turnover		0.44	0.48	0.48	0.34	0.38

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,330,450K ÷ $2,998,950K
= 0.44

Ormat Technologies Inc's fixed asset turnover has been relatively stable over the past five years, with values of 0.22 in 2023, 2022, and 2021, indicating that the company generates $0.22 in revenue for every dollar invested in fixed assets. However, there was a slight decline in fixed asset turnover from 0.27 in 2020 to 0.32 in 2019, suggesting that the company was more efficient in utilizing its fixed assets to generate revenue in those years compared to the more recent period. This analysis indicates that Ormat Technologies Inc may need to focus on improving the utilization of its fixed assets to enhance its revenue generation efficiency.