Ormat Technologies Inc (ORA)
Working capital 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 |
| Total current assets | US$ in thousands | 646,003 | 456,717 | 601,932 | 779,154 | 415,664 |
| Total current liabilities | US$ in thousands | 537,012 | 343,910 | 544,156 | 248,647 | 376,476 |
| Working capital turnover | 12.21 | 10.66 | 19.00 | 1.33 | 19.04 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,330,450K ÷ ($646,003K – $537,012K)
= 12.21
The working capital turnover ratio for Ormat Technologies Inc has fluctuated over the past five years. In 2019, the ratio was at its highest, indicating the company efficiently utilized its working capital to generate sales. However, in 2020, the ratio dropped significantly to 1.33, suggesting a potential inefficiency in utilizing working capital during that period.
The ratio improved in 2021 and 2023, reaching 11.48 and 7.61 respectively, indicating better efficiency in converting working capital into revenue. This improvement may be attributed to better management of working capital components such as receivables, payables, and inventory. Overall, the trend in the working capital turnover ratio for Ormat Technologies Inc suggests varying degrees of effectiveness in managing working capital to support sales generation.
Peer comparison
Dec 31, 2023