Ormat Technologies Inc (ORA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,666,220 | 5,208,280 | 4,611,580 | 4,425,680 | 3,888,990 |
| Total stockholders’ equity | US$ in thousands | 4,574,480 | 2,315,430 | 1,867,570 | 1,855,000 | 1,805,980 |
| Financial leverage ratio | 1.24 | 2.25 | 2.47 | 2.39 | 2.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,666,220K ÷ $4,574,480K
= 1.24
The financial leverage ratio for Ormat Technologies Inc has shown an increasing trend from 2.15 as of December 31, 2020, to 2.39 as of December 31, 2021, further increasing to 2.47 by December 31, 2022. However, there was a slight decrease in the ratio to 2.25 as of December 31, 2023, followed by a significant drop to 1.24 by December 31, 2024.
The increasing trend in the financial leverage ratio indicates that the company has been relying more on debt to finance its operations and investments over the years. The sudden drop in the ratio in 2024 suggests a potential shift towards a lower debt-to-equity structure or a reduction in total liabilities relative to equity.
Overall, it is essential for Ormat Technologies Inc to carefully manage its financial leverage ratio to maintain a healthy balance between debt and equity financing to sustain its long-term financial stability and growth.
Peer comparison
Dec 31, 2024