Ormat Technologies Inc (ORA)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	124,399	65,841	62,092	85,456	88,095
Total stockholders’ equity	US$ in thousands	2,315,430	1,867,570	1,855,000	1,805,980	1,392,420
ROE		5.37%	3.53%	3.35%	4.73%	6.33%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $124,399K ÷ $2,315,430K
= 5.37%

Ormat Technologies Inc's return on equity (ROE) has exhibited fluctuating trends over the past five years. The ROE has ranged from 3.35% in 2021 to 6.33% in 2019. In 2023, the ROE stands at 5.37%, showing a slight improvement from the previous year's 3.53%.

While the ROE has demonstrated some variability, it is essential to consider the factors that may have influenced these fluctuations. A lower ROE could indicate that the company is less effectively utilizing its equity to generate profits, while a higher ROE suggests a better return on shareholder's equity investment.

Further analysis is needed to understand the reasons behind the changes in Ormat Technologies Inc's ROE and to determine if the company is effectively leveraging its equity to create value for its shareholders.