Ormat Technologies Inc (ORA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,330,450 | 1,202,510 | 1,097,640 | 705,342 | 746,044 |
| Receivables | US$ in thousands | 520,345 | 316,640 | 244,574 | 394,748 | 373,123 |
| Receivables turnover | 2.56 | 3.80 | 4.49 | 1.79 | 2.00 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,330,450K ÷ $520,345K
= 2.56
The receivables turnover ratio measures how effectively a company is able to collect cash from its customers. A higher turnover ratio indicates that the company is collecting payments more quickly.
Ormat Technologies Inc's receivables turnover has fluctuated over the past five years as follows: 3.05 in 2023, 4.13 in 2022, 4.40 in 2021, 3.68 in 2020, and 3.47 in 2019.
The declining trend in the receivables turnover ratio from 2021 to 2023 suggests that the company may be taking longer to collect cash from customers, which could potentially indicate issues with credit policies, customer payment delays, or changes in the customer base.
On the other hand, the company's ratio has been above 3 for all years, indicating that Ormat Technologies Inc generally collects its accounts receivable three to four times a year. This implies a moderate efficiency in managing accounts receivable.
Overall, close monitoring and analysis of the trend in receivables turnover ratio over time can provide insights into the company's credit and collection efficiency, helping stakeholders assess the effectiveness of Ormat Technologies Inc in managing its accounts receivable.
Peer comparison
Dec 31, 2023