Ormat Technologies Inc (ORA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 879,654 | 829,424 | 734,159 | 663,084 | 705,342 |
| Total assets | US$ in thousands | 5,666,220 | 5,208,280 | 4,611,580 | 4,425,680 | 3,888,990 |
| Total asset turnover | 0.16 | 0.16 | 0.16 | 0.15 | 0.18 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $879,654K ÷ $5,666,220K
= 0.16
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. In the case of Ormat Technologies Inc, the total asset turnover ratio has shown some fluctuation over the past five years.
As of December 31, 2020, the total asset turnover ratio was 0.18, indicating that Ormat was generating $0.18 in sales for every dollar of assets it owned. However, by the end of December 31, 2021, the ratio had decreased to 0.15, suggesting a decline in the company's ability to efficiently utilize its assets to generate revenue.
Subsequently, the ratio remained relatively stable from 2022 to 2024, with values of 0.16 for each year. This stability indicates that Ormat Technologies Inc was able to maintain its efficiency in generating sales relative to its total assets during this period.
Overall, the trend in Ormat's total asset turnover ratio suggests that the company may have faced challenges in optimizing its asset utilization in the past, but managed to stabilize its efficiency in recent years. Further analysis and comparison with industry benchmarks may provide deeper insights into Ormat's operational performance.
Peer comparison
Dec 31, 2024