Ormat Technologies Inc (ORA)

Return on assets (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
Net income (ttm)	US$ in thousands	124,399	106,714	89,371	76,440	65,841	66,705	63,497	65,263	62,092	63,885	64,662	74,682	85,456	77,364	77,290	88,182	88,095	93,709	88,685	54,404
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
ROA		2.39%	2.13%	1.78%	1.52%	1.43%	1.47%	1.40%	1.48%	1.40%	1.47%	1.69%	1.94%	2.20%	2.20%	2.26%	2.56%	2.71%	2.87%	2.78%	1.73%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $124,399K ÷ $5,208,280K
= 2.39%

The return on assets (ROA) for Ormat Technologies Inc has displayed a fluctuating trend over the past eight quarters. In Q4 2023, the ROA stood at 2.39%, indicating that the company generated a return of 2.39 cents in profit for every dollar of assets it possesses. This represents an improvement compared to the previous quarter's 2.13% and is the highest ROA recorded in the provided data.

Looking further back, the ROA has generally been on an upward trajectory since Q1 2022, where it was at 1.48%. This signals that Ormat Technologies has been effectively utilizing its assets to generate profits over the selected period. However, it is worth noting that the ROA was at its lowest point in Q2 2022 at 1.40%, showing a potential period of less efficient asset utilization during that quarter.

Overall, the recent ROA performance suggests an improvement in Ormat Technologies Inc's ability to generate profits relative to its asset base. Investors may find this trend positive as it indicates increasing efficiency in the company's asset management and profitability.