Ormat Technologies Inc (ORA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 123,733 | 124,399 | 65,841 | 62,092 | 85,456 |
| Total stockholders’ equity | US$ in thousands | 4,574,480 | 2,315,430 | 1,867,570 | 1,855,000 | 1,805,980 |
| ROE | 2.70% | 5.37% | 3.53% | 3.35% | 4.73% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $123,733K ÷ $4,574,480K
= 2.70%
Ormat Technologies Inc's return on equity (ROE) has fluctuated over the five-year period from December 31, 2020, to December 31, 2024.
Starting at 4.73% in 2020, the company experienced a slight decrease to 3.35% in 2021, indicating a reduction in the ability to generate profits from shareholders' equity. However, there was a slight improvement in 2022 with an ROE of 3.53%.
The most significant increase in ROE was observed in 2023, where the return on equity rose to 5.37%. This improvement suggests that the company was able to generate higher profits relative to the shareholders' equity during that period.
Unfortunately, the ROE dropped in 2024 to 2.70%, which is lower than the initial ROE in 2020. This decrease may indicate potential challenges in efficiently utilizing shareholders' equity to generate profits.
In conclusion, Ormat Technologies Inc's ROE has shown variability over the years, with improvements and declines in different periods. Further analysis may be required to understand the factors influencing these fluctuations and to identify strategies for enhancing ROE in the future.
Peer comparison
Dec 31, 2024