Ormat Technologies Inc (ORA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 172,470 | 166,585 | 24,080 | 17,709 | 65,513 |
| Revenue | US$ in thousands | 879,654 | 829,424 | 734,159 | 663,084 | 705,342 |
| Operating profit margin | 19.61% | 20.08% | 3.28% | 2.67% | 9.29% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $172,470K ÷ $879,654K
= 19.61%
Ormat Technologies Inc's operating profit margin has displayed fluctuations over the years. As of December 31, 2020, the operating profit margin was 9.29%, indicating a reasonable level of profitability relative to sales. However, there was a noticeable decline in the operating profit margin for the following year, dropping to 2.67% by December 31, 2021, possibly reflecting challenges in managing operating expenses.
Subsequently, there was a slight improvement in the operating profit margin to 3.28% by December 31, 2022. The most significant leap in profitability occurred by December 31, 2023, with the operating profit margin reaching 20.08%, which suggests effective cost management or revenue growth strategies.
The trend continued positively in the following year, as of December 31, 2024, with the operating profit margin at 19.61%. This demonstrates Ormat Technologies Inc's ability to generate profits from its core operations and potentially enhance shareholder value.
Overall, the analysis of the operating profit margin indicates both challenges and improvements in Ormat Technologies Inc's operational efficiency and profitability over the specified period.
Peer comparison
Dec 31, 2024