Ormat Technologies Inc (ORA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 547,122 | 646,003 | 456,717 | 601,932 | 779,154 |
| Total current liabilities | US$ in thousands | 598,078 | 537,012 | 343,910 | 544,156 | 248,647 |
| Current ratio | 0.91 | 1.20 | 1.33 | 1.11 | 3.13 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $547,122K ÷ $598,078K
= 0.91
The current ratio of Ormat Technologies Inc has exhibited fluctuations over the past five years. Starting at a healthy level of 3.13 at December 31, 2020, the ratio has shown a downward trend, indicating potential liquidity challenges.
As of December 31, 2021, the current ratio dropped significantly to 1.11, suggesting a decrease in the company's ability to cover its short-term liabilities with its current assets. However, there was a slight improvement by December 31, 2022, with the current ratio increasing to 1.33.
Despite this improvement in 2022, the ratio declined again to 1.20 by December 31, 2023, signaling a continuation of the liquidity concerns observed in the previous year. This downward trend in liquidity was further accentuated by a decrease to 0.91 as of December 31, 2024.
Overall, the trend in Ormat Technologies Inc's current ratio implies a potential strain on the company's short-term financial health, as its ability to meet immediate obligations with current assets has decreased consistently over the years. Further analysis of the company's financial management and operational efficiency may be required to address these liquidity challenges.
Peer comparison
Dec 31, 2024