Ormat Technologies Inc (ORA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.84% | 22.36% | 24.08% | 39.17% | 36.10% |
| Operating profit margin | 12.52% | 12.71% | 15.43% | 30.34% | 25.98% |
| Pretax margin | 9.80% | 6.70% | 7.92% | 21.61% | 17.92% |
| Net profit margin | 9.35% | 5.48% | 5.66% | 12.12% | 11.81% |
Ormat Technologies Inc's profitability ratios demonstrate fluctuating trends over the past five years. The gross profit margin has shown a declining pattern from 36.10% in 2019 to 31.83% in 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has also experienced a downward trend, falling from 25.98% in 2019 to 20.53% in 2023. This implies a decline in the company's ability to generate profits from its core operations.
The pretax margin has shown mixed results, with fluctuations in profitability levels. It peaked at 23.93% in 2020 but decreased to 16.77% in 2023, suggesting volatility in the company's pre-tax earnings relative to its total revenue.
The net profit margin has also displayed variability, with a decrease from 12.12% in 2020 to 15.00% in 2023, indicating the company's net profit as a percentage of revenue has fluctuated over the years.
Overall, the varying profitability ratios of Ormat Technologies Inc highlight the company's changing financial performance and efficiency in generating profits over the analyzed period. Further investigation into the underlying factors driving these trends may be necessary to assess the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.20% | 3.31% | 3.83% | 5.50% | 5.96% |
| Return on assets (ROA) | 2.39% | 1.43% | 1.40% | 2.20% | 2.71% |
| Return on total capital | 9.90% | 9.01% | 9.14% | 7.24% | 8.90% |
| Return on equity (ROE) | 5.37% | 3.53% | 3.35% | 4.73% | 6.33% |
Ormat Technologies Inc's profitability ratios have shown a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been declining from 5.96% in 2019 to 3.27% in 2023. This indicates a decreasing trend in the company's ability to generate operating profits from its assets.
- Return on assets (ROA) has also shown a fluctuating pattern, with a peak of 2.71% in 2019, dropping to 1.43% in 2022, and then slightly improving to 2.39% in 2023. This ratio reflects the company's overall efficiency in generating profits from its total assets.
- Return on total capital has been on a downward trend, decreasing from 7.40% in 2019 to 3.87% in 2023. This suggests a decline in the company's ability to generate returns from both equity and debt capital.
- Return on equity (ROE) has shown a similar trend, with fluctuations over the years. It peaked at 6.33% in 2019, but decreased to 3.53% in 2022 and then slightly improved to 5.37% in 2023. ROE reflects the company's profitability from the perspective of shareholders' equity.
Overall, the declining trend in Ormat Technologies Inc's profitability ratios, particularly in Operating ROA and Return on total capital, raises concerns about the company's operational efficiency and utilization of capital resources. Further analysis of the company's financial performance and operational strategies may be necessary to address these profitability challenges.