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.