Ormat Technologies Inc (ORA)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 22.90 | 28.24 | 26.81 | 32.69 | 29.07 | 31.01 | 27.97 | 36.01 | 17.91 | 23.88 | 26.94 | 28.59 | 26.04 | 25.76 | 26.23 | 34.07 | 30.05 | 28.35 | 31.39 | 26.94 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 22.90 | 28.24 | 26.81 | 32.69 | 29.07 | 31.01 | 27.97 | 36.01 | 17.91 | 23.88 | 26.94 | 28.59 | 26.04 | 25.76 | 26.23 | 34.07 | 30.05 | 28.35 | 31.39 | 26.94 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 22.90 + — – —
= 22.90
The cash conversion cycle is a key metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Ormat Technologies Inc, the cash conversion cycle has fluctuated over the past few years.
From March 31, 2020, to December 31, 2024, the cash conversion cycle varied between a low of 17.91 days and a high of 36.01 days. In general, a lower cash conversion cycle is preferable as it indicates the company is more efficient in managing its working capital and converting its investments into cash quickly.
Ormat Technologies Inc exhibited some variability in the cash conversion cycle, with fluctuations in the cycle occurring in different quarters. For example, the cycle decreased from 34.07 days on March 31, 2021, to 25.76 days on September 30, 2021, before increasing again in subsequent quarters.
Overall, a trend analysis of the cash conversion cycle for Ormat Technologies Inc could help identify areas where the company may be able to improve its working capital management to enhance efficiency and cash flow generation.
Peer comparison
Dec 31, 2024