Ormat Technologies Inc (ORA)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	773,896	751,437	720,412	680,878	680,487	636,606	622,779	610,978	584,540	502,064	485,054	477,414	429,067	442,666	452,753	462,157	476,721	458,437	461,121	463,040
Inventory	US$ in thousands	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	34,949	39,324	38,880	42,982
Inventory turnover		17.18	16.76	19.01	14.98	29.80	21.36	19.33	18.58	20.55	18.35	17.00	12.43	12.15	12.87	11.63	13.55	13.64	11.66	11.86	10.77

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $773,896K ÷ $45,037K
= 17.18

Ormat Technologies Inc's inventory turnover has shown fluctuations over the past eight quarters. Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times the company's inventory is sold and replaced over a period of time.

In Q4 2023, Ormat Technologies Inc had an inventory turnover of 12.55, which indicates that the company sold and replaced its inventory approximately 12.55 times during that quarter. This shows an improvement from Q3 2023, where the turnover was 11.77.

Looking at the trend over the past two years, we observe that Ormat's inventory turnover reached its peak in Q4 2022 at 20.38, suggesting that the company was managing its inventory exceptionally well during that period. However, the turnover has since fluctuated, with some quarters showing lower turnover rates.

Overall, it is essential for Ormat Technologies Inc to monitor its inventory turnover closely to ensure efficient management of inventory levels and avoid issues like overstocking or understocking that could impact the company's financial performance and profitability.