Ormat Technologies Inc (ORA)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	264,018	268,824	264,338	276,275	269,323
Revenue	US$ in thousands	1,330,450	1,202,510	1,097,640	705,342	746,044
Gross profit margin		19.84%	22.36%	24.08%	39.17%	36.10%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $264,018K ÷ $1,330,450K
= 19.84%

The gross profit margin of Ormat Technologies Inc has shown a declining trend over the past five years, decreasing from 36.10% in 2019 to 31.83% in 2023. This indicates that the company's ability to generate profit from its core operations has weakened over time. Factors such as increased costs of sales relative to revenue or pricing pressure may have contributed to this decline. It is essential for the company to closely monitor and address the factors affecting its gross profit margin to ensure sustainable profitability in the future.