Ormat Technologies Inc (ORA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 30.99% | 31.17% | 31.43% | 30.72% | 31.83% | 33.49% | 35.05% | 37.38% | 36.62% | 36.71% | 37.89% | 38.30% | 39.86% | 40.49% | 39.09% | 39.45% | 39.17% | 38.38% | 37.98% | 37.47% |
| Operating profit margin | 15.25% | 15.61% | 20.62% | 19.52% | 15.69% | 11.90% | 12.58% | 14.97% | 13.97% | 19.35% | 19.41% | 18.57% | 25.54% | 25.74% | 28.15% | 29.85% | 30.34% | 29.97% | 27.72% | 27.21% |
| Pretax margin | 13.12% | 14.88% | 15.50% | 15.71% | 16.77% | 13.00% | 13.29% | 14.31% | 13.02% | 17.35% | 17.00% | 16.99% | 15.62% | 16.32% | 18.98% | 20.63% | 23.92% | 22.94% | 20.40% | 19.61% |
| Net profit margin | 14.07% | 13.33% | 14.89% | 15.43% | 15.00% | 13.45% | 11.74% | 11.10% | 9.68% | 10.00% | 9.78% | 9.59% | 9.36% | 9.81% | 9.92% | 10.99% | 12.12% | 10.77% | 10.59% | 11.93% |
Ormat Technologies Inc's profitability ratios have shown fluctuations over the years. The gross profit margin has declined from a high of 40.49% in September 2021 to 30.99% in December 2024. This indicates a decrease in the percentage of revenue retained after deducting the cost of goods sold.
Similarly, the operating profit margin has experienced fluctuations, reaching a low of 11.90% in September 2023 before recovering to 20.62% in June 2024. This shows the company's ability to generate profits from its core operations has varied over the periods analyzed.
The pretax margin has also displayed variability, with a sharp decline from 22.94% in September 2020 to 13.12% in December 2024. This ratio reflects the efficiency of Ormat Technologies Inc in generating profits before accounting for taxes and indicates the impact of operating expenses and financial costs on the company's earnings.
The net profit margin has shown a mixed trend, with fluctuations but generally maintaining a range between 9% to 15%. Notably, the net profit margin has improved from 9.36% in December 2021 to 14.07% in December 2024, suggesting the company's ability to manage its expenses and achieve higher profitability.
Overall, while Ormat Technologies Inc has experienced fluctuations in its profitability ratios, efforts to improve operational efficiencies and manage costs have had a positive impact on its net profit margin in recent periods. Continual monitoring and strategic adjustments may be necessary to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.37% | 2.49% | 3.32% | 3.07% | 2.50% | 1.88% | 1.91% | 2.20% | 2.22% | 3.08% | 3.00% | 2.86% | 3.83% | 3.85% | 4.80% | 5.26% | 5.50% | 6.11% | 5.92% | 5.84% |
| Return on assets (ROA) | 2.18% | 2.12% | 2.40% | 2.43% | 2.39% | 2.13% | 1.78% | 1.63% | 1.54% | 1.59% | 1.51% | 1.48% | 1.40% | 1.47% | 1.69% | 1.94% | 2.20% | 2.20% | 2.26% | 2.56% |
| Return on total capital | 6.18% | 6.63% | 6.89% | 7.28% | 7.99% | 7.89% | 12.54% | 15.32% | 17.24% | 17.11% | 16.77% | 15.59% | 18.05% | 18.20% | 15.52% | 14.17% | 14.50% | 17.93% | 20.80% | 23.57% |
| Return on equity (ROE) | 5.10% | 4.97% | 5.57% | 5.70% | 5.37% | 4.68% | 3.96% | 3.74% | 3.81% | 3.90% | 3.75% | 3.49% | 3.35% | 3.48% | 3.54% | 4.11% | 4.73% | 5.37% | 5.41% | 6.26% |
Ormat Technologies Inc's profitability ratios have shown fluctuations over the years, indicating varying levels of profitability and efficiency in generating returns for the company and its shareholders.
1. Operating Return on Assets (Operating ROA) has seen a gradual decline from 5.84% as of March 31, 2020, to 2.37% as of December 31, 2024. This suggests that the company's operating performance in relation to its total assets has weakened over the period, impacting profitability.
2. Return on Assets (ROA) has also exhibited a downward trend, dropping from 2.56% on March 31, 2020, to 2.18% on December 31, 2024. The decreasing ROA indicates that Ormat Technologies' ability to generate profits from its assets has diminished, possibly due to operational inefficiencies or increasing costs.
3. Return on Total Capital, reflecting the overall return on both debt and equity capital invested in the company, has experienced a sharp decline from 23.57% on March 31, 2020, to 6.18% on December 31, 2024. This significant decrease suggests a reduction in the company's profitability and effectiveness in utilizing its total capital resources efficiently.
4. Return on Equity (ROE) has followed a similar downward trajectory, declining from 6.26% as of March 31, 2020, to 5.10% as of December 31, 2024. The decreasing ROE indicates a diminishing return for the company's shareholders, reflecting a lower profitability level per unit of equity invested.
Overall, the decreasing trend in Ormat Technologies Inc's profitability ratios highlights potential challenges in maintaining profitability, efficiency, and returns for both the company and its investors. It may be essential for the company to assess its operational strategies, cost structures, and capital allocation decisions to enhance profitability and sustainably improve its financial performance in the future.