Ormat Technologies Inc (ORA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.20 | 0.95 | 1.79 | 2.07 | 1.33 | 1.28 | 1.66 | 0.87 | 1.11 | 1.19 | 2.39 | 2.85 | 3.13 | 2.25 | 1.28 | 1.03 | 1.10 | 1.23 | 1.49 | 1.57 |
| Quick ratio | 1.33 | 0.52 | 1.20 | 1.52 | 1.20 | 0.79 | 1.15 | 0.53 | 0.97 | 0.90 | 1.81 | 2.18 | 3.79 | 1.99 | 0.92 | 0.75 | 1.18 | 0.72 | 0.96 | 0.89 |
| Cash ratio | 0.36 | 0.14 | 0.72 | 1.06 | 0.28 | 0.42 | 0.75 | 0.30 | 0.52 | 0.59 | 1.20 | 1.59 | 2.20 | 1.22 | 0.43 | 0.41 | 0.19 | 0.28 | 0.40 | 0.30 |
Ormat Technologies Inc's liquidity ratios indicate varying levels of short-term solvency and ability to meet its immediate financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has fluctuated over the quarters. A current ratio above 1 indicates that the company has more current assets than current liabilities. Ormat's current ratio ranged from a low of 0.87 in Q1 2022 to a high of 2.07 in Q1 2023, suggesting fluctuations in liquidity levels during the periods analyzed.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventories from current assets. Ormat's quick ratio fluctuated as well, ranging from a low of 0.62 in Q1 2022 to a high of 1.68 in Q1 2023. A quick ratio below 1 indicates that the company may struggle to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio, measures the company's ability to cover its current liabilities with its cash and cash equivalents alone. Ormat's cash ratio varied from 0.25 in Q3 2023 to 1.18 in Q1 2023. A cash ratio below 1 indicates that the company may have difficulty meeting its short-term obligations only with cash on hand.
Overall, Ormat Technologies Inc's liquidity ratios show fluctuations over the quarters, indicating that the company's liquidity position changed throughout the periods analyzed. It is important for the company to maintain a healthy liquidity position to ensure it can meet its short-term financial obligations without significant strain on its operations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates better liquidity and efficiency in managing working capital.
Ormat Technologies Inc's cash conversion cycle has fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 57.77 days, showing a significant improvement from the previous quarter where it was 136.10 days. This suggests that the company was able to streamline its operations and convert its investments into cash more quickly.
Compared to the same quarter in the previous year, Q4 2022, Ormat Technologies Inc's cash conversion cycle has increased from 45.40 days to 57.77 days in Q4 2023. This indicates a slight slowdown in the efficiency of the company's working capital management over the year.
Overall, Ormat Technologies Inc's cash conversion cycle has shown fluctuations, with some quarters demonstrating better efficiency in working capital management than others. Further analysis of the underlying factors driving these changes would be necessary to understand the company's overall financial performance and liquidity position.