Ormat Technologies Inc (ORA)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 879,654 890,253 886,525 868,358 829,424 793,570 761,399 735,681 734,159 719,662 702,619 680,442 663,084 651,477 651,582 679,581 705,342 718,402 729,954 739,119
Property, plant and equipment US$ in thousands — — — — — 3,752,460 714,850 905,505 3,413,870 795,891 3,225,350 3,138,800 3,042,230 2,941,080 2,734,670 2,644,100 479,315 463,073 2,463,080 413,789
Fixed asset turnover — — — — — 0.21 1.07 0.81 0.22 0.90 0.22 0.22 0.22 0.22 0.24 0.26 1.47 1.55 0.30 1.79

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $879,654K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. Looking at the data provided for Ormat Technologies Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the fixed asset turnover ratio.

The ratio started at 1.79 on March 31, 2020, reflecting that for every dollar invested in fixed assets, the company generated $1.79 in revenue. However, the ratio dropped significantly to 0.30 by June 30, 2020, indicating a deterioration in the efficiency of utilizing fixed assets to generate revenue. This low ratio persisted until March 31, 2021, where it stood at 0.26.

From there, the ratio fluctuated in a range between 0.22 and 1.55 until September 30, 2022, showing some instability in asset utilization during this period. Notably, on September 30, 2022, the ratio spiked to 0.90, suggesting a temporary improvement in asset efficiency.

Subsequently, the ratio improved significantly, reaching its peak at 1.07 on June 30, 2023, indicating that the company was able to generate more revenue from its fixed assets. However, by September 30, 2023, the ratio dropped again to a low of 0.21, reflecting a decline in asset efficiency.

The data for the subsequent periods, December 31, 2023, to December 31, 2024, show the ratio as dash ("—"), indicating that relevant information is not available for those periods.

In conclusion, the fixed asset turnover for Ormat Technologies Inc has shown fluctuations over the analyzed period, indicating varying levels of efficiency in utilizing fixed assets to generate revenue. It is important for the company to focus on maintaining a balance between asset utilization and revenue generation to ensure sustainable growth and profitability.