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