Ormat Technologies Inc (ORA)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	264,018	265,772	266,877	274,988	268,824	264,190	266,222	260,596	264,338	263,803	254,693	268,104	276,275	275,736	277,201	276,962	269,323	285,630	278,927	271,242
Revenue (ttm)	US$ in thousands	1,330,609	1,267,824	1,230,814	1,203,225	1,203,635	1,199,629	1,177,737	1,145,542	1,097,638	959,486	850,275	775,709	705,342	718,402	729,954	739,119	746,044	744,067	740,048	734,282
Gross profit margin		19.84%	20.96%	21.68%	22.85%	22.33%	22.02%	22.60%	22.75%	24.08%	27.49%	29.95%	34.56%	39.17%	38.38%	37.98%	37.47%	36.10%	38.39%	37.69%	36.94%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $264,018K ÷ $1,330,609K
= 19.84%

Ormat Technologies Inc's gross profit margin has shown a declining trend over the past eight quarters. The margin decreased from 38.30% in Q1 2022 to 31.83% in Q4 2023. This indicates that the company's cost of goods sold as a percentage of its revenue has been increasing, resulting in lower profitability at the gross level. The downward trend in the gross profit margin may raise concerns about the company's ability to maintain its profit margins in the face of rising costs or pricing pressures. Further analysis of the factors driving this trend, such as changes in input costs, pricing strategies, or efficiencies in production processes, may be warranted.