Ormat Technologies Inc (ORA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 888,752 | 782,527 | 678,795 | 429,067 | 476,721 |
| Payables | US$ in thousands | 140,694 | 77,551 | 75,164 | 75,779 | 73,271 |
| Payables turnover | 6.32 | 10.09 | 9.03 | 5.66 | 6.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $888,752K ÷ $140,694K
= 6.32
Ormat Technologies Inc's payables turnover ratio has exhibited fluctuating trends over the past five years. The ratio decreased from 6.51 in 2019 to 4.02 in 2023, indicating a decline in the efficiency of the company in paying off its trade payables. The decrease in the payables turnover ratio may suggest that the company took longer to pay its suppliers in 2023 compared to previous years, possibly signaling potential liquidity issues or changes in payment terms with suppliers.
A lower payables turnover ratio could indicate liquidity challenges or inefficiencies in managing working capital. It is essential for Ormat Technologies Inc to carefully analyze the reasons behind the declining trend in the payables turnover ratio and take appropriate measures to improve its efficiency in managing trade payables. Regular monitoring and improvement of payables turnover can enhance the company's liquidity position and overall financial health.
Peer comparison
Dec 31, 2023