Ormat Technologies Inc (ORA)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	5,208,280	4,611,580	4,425,680	3,888,990	3,250,490
Operating ROA		3.20%	3.31%	3.83%	5.50%	5.96%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $166,585K ÷ $5,208,280K
= 3.20%

Ormat Technologies Inc's operating return on assets (operating ROA) has exhibited some variability over the past five years. The operating ROA decreased from 5.96% in 2019 to 4.97% in 2020, reflecting a decline in the company's ability to generate operating profit from its assets. This trend continued with a further decrease to 3.82% in 2021. However, there was a slight improvement in 2022 when the operating ROA increased to 4.04%.

In the most recent year, 2023, Ormat Technologies Inc's operating ROA experienced a further decline to 3.27%. This indicates that the company's ability to generate operating income from its assets deteriorated compared to the previous year. A decreasing operating ROA may suggest inefficiencies in the company's asset utilization or operational performance.

It is important for Ormat Technologies Inc to closely monitor and address the factors contributing to the decline in its operating ROA to ensure the efficient use of its assets and sustainable profitability in the future.