Ormat Technologies Inc (ORA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.90 | 29.07 | 17.91 | 26.04 | 30.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 22.90 | 29.07 | 17.91 | 26.04 | 30.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.90 + — – —
= 22.90
Based on the data provided for Ormat Technologies Inc, the cash conversion cycle has shown fluctuations over the years from 2020 to 2024. The cash conversion cycle is a measure of how efficiently a company can convert its resources into cash flow.
In December 2020, the cash conversion cycle was 30.05 days, indicating that it took the company approximately 30 days to convert its investments in inventory and other resources into cash.
By December 2021, the cash conversion cycle improved to 26.04 days, suggesting a more efficient process of converting resources into cash.
In 2022, the cash conversion cycle decreased significantly to 17.91 days, indicating a further improvement in the company's efficiency in converting resources into cash.
However, in 2023, the cash conversion cycle increased to 29.07 days, suggesting a temporary delay in the cash conversion process compared to the previous year.
By December 2024, the cash conversion cycle decreased to 22.90 days, indicating a partial recovery in the efficiency of converting resources into cash compared to the previous year but not reaching the level seen in 2022.
Overall, the fluctuation in the cash conversion cycle over the years highlights the importance of managing working capital effectively to ensure a steady and efficient cash flow within Ormat Technologies Inc.
Peer comparison
Dec 31, 2024