Ormat Technologies Inc (ORA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	607,035	565,406	465,335	398,746	429,067
Inventory	US$ in thousands	38,092	45,037	22,832	28,445	35,321
Inventory turnover		15.94	12.55	20.38	14.02	12.15

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $607,035K ÷ $38,092K
= 15.94

Ormat Technologies Inc's inventory turnover has shown a fluctuating trend over the years, ranging from 12.15 to 20.38. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory by selling goods quickly.

In 2022, the inventory turnover ratio peaked at 20.38, reflecting a strong ability to sell inventory rapidly. This could suggest effective inventory management practices or increased demand for Ormat's products during that period.

However, in 2023, the inventory turnover ratio decreased to 12.55, implying that Ormat took longer to sell its inventory compared to the previous year. This may raise concerns about potential overstocking or a slowdown in sales during that period.

In 2024, the inventory turnover ratio improved to 15.94, showing a recovery in inventory management efficiency. This could indicate better sales performance or streamlined inventory operations during that year.

Overall, Ormat Technologies Inc's inventory turnover has displayed some variability, which could be influenced by factors such as demand fluctuations, production efficiency, or supply chain disruptions. Monitoring this ratio over time can provide insights into the company's operational efficiency and performance in managing its inventory.