Ormat Technologies Inc (ORA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	166,585	145,182	146,508	160,891	152,803	177,439	174,534	164,546	169,357	167,691	183,389	202,845	214,013	215,290	202,323	201,128	193,796	207,306	194,489	184,242
Total assets	US$ in thousands	5,208,280	5,010,810	5,010,640	5,015,270	4,611,580	4,524,530	4,541,980	4,414,190	4,425,680	4,359,370	3,818,550	3,859,210	3,888,990	3,520,950	3,418,380	3,445,610	3,250,490	3,259,490	3,193,780	3,143,210
Operating ROA		3.20%	2.90%	2.92%	3.21%	3.31%	3.92%	3.84%	3.73%	3.83%	3.85%	4.80%	5.26%	5.50%	6.11%	5.92%	5.84%	5.96%	6.36%	6.09%	5.86%

December 31, 2023 calculation

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

Ormat Technologies Inc's operating return on assets (ROA) has exhibited a relatively stable trend over the past eight quarters, ranging from 3.27% to 4.04%. The operating ROA measures the company's ability to generate operating profit from its assets, indicating efficiency in utilizing its resources to generate income.

The data shows that Ormat's operating ROA peaked at 4.04% in Q4 2022 and has since experienced a slight decline. Despite this decline, the company has maintained a consistent performance above 3%, which suggests effective asset management and operational efficiency.

It is important for Ormat Technologies Inc to continue monitoring its operating ROA to ensure that it remains at an optimal level. Any significant deviations from the historical trend could indicate changes in the company's operational efficiency or asset utilization, requiring further analysis and potentially corrective action.