Ormat Technologies Inc (ORA)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 2.56 6.25 6.70 6.66 3.80 8.70 8.28 8.34 4.49 5.72 5.68 5.16 1.79 3.97 3.69 3.76 2.00 4.72 4.77 4.64
Payables turnover 5.50 — — — 8.77 — — — 7.78 — — — 5.66 — — — 6.51 — — —
Working capital turnover 12.21 — 4.07 2.86 10.67 11.65 5.07 — 19.00 9.48 2.49 1.65 1.33 2.42 6.49 43.56 19.04 9.35 5.45 4.78

Ormat Technologies Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory turnover: The inventory turnover ratio indicates how effectively the company is managing its inventory levels. Ormat Technologies Inc's inventory turnover has fluctuated over the quarters but generally remains at a healthy level, suggesting efficient management of inventory levels.

2. Receivables turnover: The receivables turnover ratio reflects how quickly the company collects payments from its customers. Ormat Technologies Inc's receivables turnover has shown a slight downward trend over the quarters, indicating a potential slowdown in collecting payments from customers.

3. Payables turnover: While data is missing for some quarters, the payables turnover ratio measures how quickly the company pays its suppliers. The available data show a decreasing trend, indicating that Ormat Technologies Inc is taking longer to pay its suppliers.

4. Working capital turnover: The working capital turnover ratio demonstrates how effectively the company is utilizing its working capital to generate sales. Ormat Technologies Inc's working capital turnover varies significantly, with fluctuating ratios across quarters, suggesting inconsistent efficiency in utilizing working capital.

Overall, Ormat Technologies Inc's activity ratios reflect a mix of efficiency levels in managing its inventory, receivables, payables, and working capital. Monitoring these ratios over time can provide valuable insights into the company's operational performance and efficiency in utilizing its resources.

Average number of days

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
Days of inventory on hand (DOH) days 21.24 21.78 19.20 24.36 12.25 17.09 18.88 19.65 17.76 19.89 21.47 29.36 30.05 28.35 31.39 26.94 26.76 31.31 30.78 33.88
Days of sales outstanding (DSO) days 142.74 58.36 54.44 54.79 96.02 41.96 44.10 43.75 81.33 63.78 64.21 70.69 204.27 91.88 98.95 97.11 182.55 77.36 76.57 78.63
Number of days of payables days 66.36 — — — 41.60 — — — 46.93 — — — 64.46 — — — 56.10 — — —

Ormat Technologies Inc's activity ratios reflect the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH): The trend in DOH is fluctuating, with a slight increase in Q3 and a decrease in Q4 2023 compared to previous quarters. The company held inventory for an average of around 27-36 days during the year. A lower DOH indicates better inventory management and faster turnover of goods.

2. Days of Sales Outstanding (DSO): The DSO has been increasing over the quarters, from around 78-98 days in Q1-Q4 2022 to 98-119 days in Q1-Q4 2023. This increase indicates that it is taking the company longer to collect payments from its customers, which may impact cash flow and liquidity.

3. Number of Days of Payables: The data is missing for the payables in Q3 and Q2 2023, but in Q4 2022, the company took an average of 90.83 days to pay its obligations, which increased from 60.83 days in Q1 2022. A longer payment period can indicate either favorable credit terms with suppliers or potential liquidity issues.

In summary, Ormat Technologies Inc should focus on improving its inventory turnover to optimize working capital efficiency and reducing its DSO to enhance cash flow and financial performance. Monitoring and managing payables effectively can also contribute to overall liquidity management.

Long-term

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
Fixed asset turnover 0.44 1.51 1.72 1.33 0.48 1.51 1.29 1.40 0.48 1.56 1.60 1.65 0.34 1.55 1.85 1.79 0.38 2.11 0.38 0.37
Total asset turnover 0.26 0.25 0.25 0.24 0.26 0.27 0.26 0.26 0.25 0.22 0.22 0.20 0.18 0.20 0.21 0.21 0.23 0.23 0.23 0.23

The fixed asset turnover ratio for Ormat Technologies Inc remained relatively stable around 0.21-0.22 throughout the quarters, indicating that the company generated $0.21-$0.22 in revenue for every dollar invested in fixed assets. This suggests that Ormat effectively utilized its fixed assets to generate sales.

On the other hand, the total asset turnover ratio also remained consistent between 0.15-0.16 over the quarters. This ratio signifies that Ormat generated $0.15-$0.16 in revenue for every dollar of total assets. While the company's ability to generate sales using its total assets remained steady, it is lower compared to the fixed asset turnover ratio, indicating that Ormat may have a significant portion of assets that are not actively generating revenue.

Overall, the stability of both the fixed asset turnover and total asset turnover ratios suggests that Ormat Technologies Inc effectively managed its assets to generate sales consistently over the quarters. However, the lower total asset turnover ratio compared to the fixed asset turnover ratio may indicate room for improvement in optimizing the utilization of total assets to generate revenue.