Ormat Technologies Inc (ORA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	195,808	95,872	239,278	448,252	71,173
Short-term investments	US$ in thousands	—	—	43,343	98,217	—
Receivables	US$ in thousands	520,345	316,640	244,574	394,748	373,123
Total current liabilities	US$ in thousands	537,012	343,910	544,156	248,647	376,476
Quick ratio		1.33	1.20	0.97	3.79	1.18

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($195,808K + $—K + $520,345K) ÷ $537,012K
= 1.33

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

Ormat Technologies Inc's quick ratio has fluctuated over the past five years. In 2023, the quick ratio stood at 0.95, showing a slight improvement from the previous year. Despite the increase, the ratio remains below 1, indicating that the company may have difficulty meeting its short-term obligations using only its most liquid assets.

Comparing to previous years, in 2022 and 2021, the quick ratio was 0.88 and 0.86 respectively, both below 1 as well, suggesting a potential liquidity concern during those periods. In contrast, the quick ratio was significantly higher in 2020 at 2.64, indicating a strong ability to cover short-term liabilities. However, the ratio dropped to 0.79 in 2019, reflecting a weaker liquidity position that year.

Overall, the trend in Ormat Technologies Inc's quick ratio shows variability in its liquidity position over the years. It is essential for the company to carefully manage its liquidity to ensure it can meet its short-term obligations effectively.