Ormat Technologies Inc (ORA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 205,772 | 195,808 | 95,872 | 239,278 | 448,252 |
| Short-term investments | US$ in thousands | -111,377 | — | 0 | 43,343 | 98,217 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 598,078 | 537,012 | 343,910 | 544,156 | 248,647 |
| Quick ratio | 0.16 | 0.36 | 0.28 | 0.52 | 2.20 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($205,772K
+ $-111,377K
+ $—K)
÷ $598,078K
= 0.16
The quick ratio of Ormat Technologies Inc has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio was a healthy 2.20, indicating the company had more than enough liquid assets to cover its current liabilities. However, there was a significant decline in the quick ratio to 0.52 by December 31, 2021, suggesting a potential liquidity concern.
Subsequently, the quick ratio further decreased to 0.28 by December 31, 2022, indicating a continued strain on the company's ability to meet short-term obligations with its liquid assets. However, there was a slight improvement to 0.36 by December 31, 2023, which may signal some efforts to enhance liquidity management.
By December 31, 2024, the quick ratio dropped to 0.16, indicating a significant decline in the company's ability to cover immediate liabilities with its quick assets. This downward trend in the quick ratio over the years may raise concerns about Ormat Technologies Inc's liquidity position and its ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024