Ormat Technologies Inc (ORA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.99% | 31.83% | 36.62% | 39.86% | 39.17% |
| Operating profit margin | 19.61% | 20.08% | 3.28% | 2.67% | 9.29% |
| Pretax margin | 13.12% | 16.77% | 13.02% | 15.62% | 23.92% |
| Net profit margin | 14.07% | 15.00% | 8.97% | 9.36% | 12.12% |
Ormat Technologies Inc's profitability ratios show a mix of trends over the five-year period from 2020 to 2024.
- The company's Gross Profit Margin has fluctuated slightly, starting at 39.17% in 2020 and increasing to 39.86% in 2021 before declining to 30.99% in 2024. This indicates that Ormat Technologies has maintained a relatively stable level of profitability in terms of cost management and pricing strategies.
- In terms of Operating Profit Margin, there was a significant decrease from 9.29% in 2020 to 2.67% in 2021 followed by an upward trend to 19.61% in 2024. This could suggest that the company faced challenges in controlling operating expenses in 2021 but managed to improve its operational efficiency in the following years.
- Ormat's Pretax Margin also showed variability, starting at 23.92% in 2020, dropping to 13.02% in 2022, and eventually rising to 16.77% in 2023. This indicates fluctuations in the company's pre-tax profitability, possibly due to changes in revenue streams or cost structures.
- The Net Profit Margin depicts a similar pattern to the Pretax Margin, with a decrease from 12.12% in 2020 to 9.36% in 2021, followed by an increase to 14.07% in 2024. This suggests that Ormat Technologies managed to enhance its net profitability over the years, possibly through effective cost controls or revenue generation strategies.
In conclusion, Ormat Technologies Inc's profitability ratios exhibit varying trends over the five-year period, reflecting the company's ability to adapt to changing market conditions and manage its costs effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.04% | 3.20% | 0.52% | 0.40% | 1.68% |
| Return on assets (ROA) | 2.18% | 2.39% | 1.43% | 1.40% | 2.20% |
| Return on total capital | 5.45% | 10.28% | 9.82% | 10.04% | 13.66% |
| Return on equity (ROE) | 2.70% | 5.37% | 3.53% | 3.35% | 4.73% |
Ormat Technologies Inc's profitability ratios have exhibited varying trends over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated between a low of 0.40% in 2021 to a high of 3.20% in 2023. This ratio indicates the company's operating income generated per dollar of assets, and the increasing trend from 2021 to 2023 suggests improved operational efficiency.
2. Return on assets (ROA) has ranged from 1.40% in 2021 to 2.39% in 2023. This ratio reflects the company's overall profitability in relation to its total assets, and the fluctuating trend suggests mixed performance in generating profits from its assets.
3. Return on total capital has decreased from 13.66% in 2020 to 5.45% in 2024. This ratio evaluates the company's ability to generate returns for both debt and equity holders and the declining trend indicates a decrease in overall profitability relative to the capital employed.
4. Return on equity (ROE) has also shown a downward trajectory from 4.73% in 2020 to 2.70% in 2024. ROE measures the return to the company's shareholders and the declining trend suggests a decrease in the ability of the company to generate profits relative to shareholders' equity.
Overall, the profitability ratios of Ormat Technologies Inc reflect a mixed performance with fluctuations in profitability and returns generated from assets, capital, and equity over the five-year period. Further analysis would be needed to understand the underlying reasons for these trends and to assess the company's overall financial health.