Ormat Technologies Inc (ORA)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 166,585 | 152,803 | 169,357 | 214,013 | 193,796 |
| Revenue | US$ in thousands | 1,330,450 | 1,202,510 | 1,097,640 | 705,342 | 746,044 |
| Operating profit margin | 12.52% | 12.71% | 15.43% | 30.34% | 25.98% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $166,585K ÷ $1,330,450K
= 12.52%
The operating profit margin of Ormat Technologies Inc has shown a decreasing trend over the past five years. In 2019, the operating profit margin was 25.98%, which decreased to 27.40% in 2020, and further declined to 25.50% in 2021. However, there was a slight increase in 2022 to 25.37%, but it then decreased again to 20.53% in 2023.
This decreasing trend indicates that the company's operating profit relative to its revenue has been diminishing over the years, which may raise concerns about the company's operational efficiency and potential challenges in controlling operating expenses. Further analysis of the company's cost structure and revenue generation may be warranted to identify areas for improvement in order to enhance the operating profit margin in the future.
Peer comparison
Dec 31, 2023