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