Ormat Technologies Inc (ORA)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 1,377,210 | 1,011,930 |
| Total assets | US$ in thousands | 5,208,280 | 4,611,580 | 4,425,680 | 3,888,990 | 3,250,490 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.35 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $5,208,280K
= 0.00
The debt-to-assets ratio of Ormat Technologies Inc has shown some fluctuation over the past five years, ranging from 0.38 to 0.44. The ratio indicates that, on average, Ormat Technologies finances 40% of its assets through debt, with the remaining 60% being funded by equity.
A decreasing trend in the ratio between 2020 and 2023 suggests a decreasing reliance on debt to fund the company's assets, which could be viewed positively as it indicates a healthier financial position and potentially lower financial risk. However, the ratio increased slightly in 2022 before declining in 2023, which could indicate some variability in the company's debt management strategies.
Overall, the debt-to-assets ratio of Ormat Technologies Inc is within a reasonable range, indicating a balanced mix of debt and equity financing. It is important to continue monitoring this ratio along with other financial metrics to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2023