Ormat Technologies Inc (ORA)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	130,382	80,583	86,942	152,459	133,708
Revenue	US$ in thousands	1,330,450	1,202,510	1,097,640	705,342	746,044
Pretax margin		9.80%	6.70%	7.92%	21.61%	17.92%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $130,382K ÷ $1,330,450K
= 9.80%

The pretax margin of Ormat Technologies Inc has fluctuated over the past five years, ranging from a low of 12.60% in 2022 to a high of 23.93% in 2020. In 2023, the pretax margin improved to 16.77%, showing a positive trend from the previous year. This indicator reflects the company's ability to generate profits before accounting for taxes relative to its total revenue. It is essential for the company to effectively manage its operating expenses and maximize revenue to maintain a healthy pretax margin, which is crucial for overall financial performance and sustainability.