Ormat Technologies Inc (ORA)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	607,035	612,739	607,870	601,599	565,406	527,798	494,522	460,693	465,335	455,472	436,397	419,846	398,746	387,674	396,889	411,477	429,067	442,666	452,753	462,157
Inventory	US$ in thousands	38,092	47,408	44,647	53,874	45,037	44,844	37,900	45,447	22,832	29,805	32,213	32,888	28,445	27,356	28,526	38,408	35,321	34,384	38,932	34,107
Inventory turnover		15.94	12.92	13.62	11.17	12.55	11.77	13.05	10.14	20.38	15.28	13.55	12.77	14.02	14.17	13.91	10.71	12.15	12.87	11.63	13.55

December 31, 2024 calculation

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

Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times the inventory is sold and replaced over a specific period.

Based on the data provided for Ormat Technologies Inc, we observe fluctuations in the inventory turnover ratio over the time period from March 31, 2020, to December 31, 2024. The inventory turnover ratio ranges from a low of 10.14 on March 31, 2023, to a high of 20.38 on December 31, 2022.

We can see that Ormat Technologies Inc generally maintains healthy inventory turnover ratios above 10, indicating that the company efficiently manages its inventory levels. A higher inventory turnover ratio suggests that the company sells its products quickly, minimizing the risk of obsolete inventory and improving cash flow.

The trend in the inventory turnover ratio for Ormat Technologies Inc shows variability, with fluctuations occurring in different quarters. For instance, the ratio increased significantly from September 30, 2022, to December 31, 2022, indicating an improvement in inventory management efficiency during that period. However, there are also periods where the ratio decreased, such as on March 31, 2023, which may warrant further investigation into potential inventory management issues.

Overall, analyzing Ormat Technologies Inc's inventory turnover ratios provides insights into the company's operational efficiency and inventory management practices, which can be crucial for assessing its overall financial health and performance.