Ormat Technologies Inc (ORA)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	149,957	158,367	163,324	171,342	185,061	179,855	282,739	334,629	321,994	315,975	307,341	291,558	334,813	333,752	283,268	257,500	261,853	258,167	297,147	332,059
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,425,130	2,388,800	2,371,240	2,352,080	2,315,430	2,278,830	2,254,390	2,184,540	1,867,570	1,846,500	1,832,630	1,870,670	1,855,000	1,833,380	1,825,080	1,816,610	1,805,980	1,439,740	1,428,400	1,409,060
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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $149,957K ÷ ($—K + $2,425,130K)
= 6.18%

Ormat Technologies Inc has experienced fluctuations in its return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital decreased from 23.57% as of March 31, 2020, to 6.18% as of December 31, 2024.

The trend in return on total capital indicates a gradual decrease, suggesting a decline in the company's ability to generate profits from the capital invested in its operations. This downward trend could be a cause for concern as it may indicate inefficiencies in the company's capital allocation or operational performance.

It is essential for Ormat Technologies Inc to analyze the factors contributing to the decline in return on total capital and take the necessary steps to improve efficiency and profitability in order to enhance shareholder value and sustain long-term growth.