Ormat Technologies Inc (ORA)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,666,220 | 5,208,280 | 4,611,580 | 4,425,680 | 3,888,990 |
| Operating ROA | 3.04% | 3.20% | 0.52% | 0.40% | 1.68% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $172,470K ÷ $5,666,220K
= 3.04%
Ormat Technologies Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years.
As of December 31, 2020, the operating ROA stood at 1.68%, indicating that the company generated $0.0168 in operating income for every dollar of assets it had.
By December 31, 2021, the operating ROA decreased to 0.40%, reflecting a significant decline in the company's operating efficiency in generating returns from its assets.
However, there was a slight improvement by December 31, 2022, with the operating ROA increasing to 0.52%, although it still remained below the level seen in 2020.
The operating ROA experienced a notable recovery by December 31, 2023, jumping to 3.20%. This sharp increase suggests an enhanced operational performance and efficiency in utilizing the company's assets to generate operating income.
In the most recent period reported, December 31, 2024, Ormat Technologies Inc's operating ROA decreased slightly to 3.04%. Despite the slight dip, the company continues to exhibit a strong ability to generate operating income relative to its asset base.
Overall, fluctuations in Ormat Technologies Inc's operating ROA over the past five years indicate varying levels of operational efficiency. Investors and stakeholders should monitor future trends in the operating ROA to assess the company's ability to generate returns from its assets consistently.
Peer comparison
Dec 31, 2024