Ormat Technologies Inc (ORA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 249,408 | 237,966 | 183,352 | 186,209 | 246,670 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,574,480 | 2,315,430 | 1,867,570 | 1,855,000 | 1,805,980 |
| Return on total capital | 5.45% | 10.28% | 9.82% | 10.04% | 13.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $249,408K ÷ ($—K + $4,574,480K)
= 5.45%
Ormat Technologies Inc's return on total capital has exhibited a declining trend over the years, starting at 13.66% on December 31, 2020, and decreasing to 10.04% on December 31, 2021. The downward trend continued with returns of 9.82% on December 31, 2022, and 10.28% on December 31, 2023. However, there was a significant drop to 5.45% on December 31, 2024, indicating a substantial decline in the company's efficiency in generating returns from its total capital employed. This declining trend may raise concerns about the company's operational performance and capital allocation strategies, warranting further investigation into the underlying factors contributing to the decrease in return on total capital.
Peer comparison
Dec 31, 2024