Ormat Technologies Inc (ORA)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	21.24	21.78	19.20	24.36	12.25	17.09	18.88	19.65	17.76	19.89	21.47	29.36	30.05	28.35	31.39	26.94	26.76	31.31	30.78	33.88
Days of sales outstanding (DSO)	days	142.74	58.36	54.44	54.79	96.02	41.96	44.10	43.75	81.33	63.78	64.21	70.69	204.27	91.88	98.95	97.11	182.55	77.36	76.57	78.63
Number of days of payables	days	66.36	—	—	—	41.60	—	—	—	46.93	—	—	—	64.46	—	—	—	56.10	—	—	—
Cash conversion cycle	days	97.62	80.14	73.64	79.15	66.67	59.05	62.98	63.40	52.16	83.67	85.67	100.05	169.86	120.23	130.33	124.04	153.21	108.67	107.35	112.51

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 21.24 + 142.74 – 66.36
= 97.62

The cash conversion cycle of Ormat Technologies Inc experienced fluctuations throughout the quarters presented. In Q4 2023, the company's cash conversion cycle significantly improved to 57.77 days compared to the previous quarter, indicating that the company was able to more efficiently convert its investments in raw materials and other resources into cash.

On the other hand, in Q3 2023, the cash conversion cycle deteriorated to 136.10 days, which was significantly longer compared to the previous quarter. This suggests that Ormat Technologies Inc faced challenges in managing its working capital, resulting in a longer time to convert resources into cash.

Further back in Q2 2023, the cash conversion cycle decreased to 126.42 days, indicating some improvement in efficiency compared to the previous quarter. However, in Q1 2023, the cycle increased again to 134.12 days, reflecting potential issues in managing cash flows and working capital during that period.

It's worth noting that in Q4 2022, there was a notably shorter cash conversion cycle of 45.40 days, indicating stronger working capital management during that quarter. However, in Q3 2022, the cycle increased to 102.64 days, and in Q2 and Q1 2022, it remained relatively stable around 108 days.

Overall, fluctuations in Ormat Technologies Inc's cash conversion cycle suggest varying levels of efficiency in managing its working capital and converting investments into cash during the periods analyzed. Further investigation into the company's operational and financial strategies may be necessary to understand the underlying reasons for these fluctuations and to optimize the cash conversion cycle for future performance.