Ormat Technologies Inc (ORA)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 879,654 890,253 886,525 868,358 829,424 793,570 761,399 735,681 734,159 719,662 702,619 680,442 663,084 651,477 651,582 679,581 705,342 718,402 729,954 739,119
Total current assets US$ in thousands 547,122 537,491 516,995 609,235 646,003 515,657 685,981 810,987 456,717 474,975 585,608 507,989 601,932 635,439 587,989 724,935 779,154 532,591 517,069 584,286
Total current liabilities US$ in thousands 598,078 566,334 530,732 546,254 537,012 540,034 383,209 390,960 343,910 372,028 353,113 583,991 544,156 534,272 246,229 254,234 248,647 236,303 404,646 567,319
Working capital turnover — — — 13.79 7.61 — 2.51 1.75 6.51 6.99 3.02 — 11.48 6.44 1.91 1.44 1.33 2.42 6.49 43.56

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $879,654K ÷ ($547,122K – $598,078K)
= —

Ormat Technologies Inc's working capital turnover has shown varying trends over the reported periods as per the provided data.

1. The working capital turnover ratio represents how efficiently the company is using its working capital to generate sales revenue. A higher ratio indicates more efficient utilization of working capital.

2. In March 2020, Ormat Technologies had a high working capital turnover of 43.56, suggesting efficient management of working capital in generating sales.

3. However, the ratio decreased significantly by June 2020 to 6.49 and continued to decline in the subsequent quarters, indicating a potential inefficiency in using working capital to generate sales during that period.

4. The trend started to improve in December 2021 when the working capital turnover ratio increased to 11.48, signaling better utilization of working capital to drive sales growth.

5. In the following periods, the ratio remained relatively stable, with some fluctuations but generally indicating a reasonable efficiency in working capital management.

6. It is notable that in some periods like September 2023 and June 2024, the working capital turnover ratio was not available, possibly due to missing or incomplete data.

7. In March 2024, the working capital turnover ratio spiked significantly to 13.79, indicating a notable improvement in working capital efficiency compared to previous periods.

8. Overall, Ormat Technologies Inc should continue to monitor and improve its working capital turnover ratio to ensure optimal utilization of working capital resources in supporting the company's sales and operational activities.