Ormat Technologies Inc (ORA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,208,280 | 4,611,580 | 4,425,680 | 3,888,990 | 3,250,490 |
| Total stockholders’ equity | US$ in thousands | 2,315,430 | 1,867,570 | 1,855,000 | 1,805,980 | 1,392,420 |
| Financial leverage ratio | 2.25 | 2.47 | 2.39 | 2.15 | 2.33 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,208,280K ÷ $2,315,430K
= 2.25
The financial leverage ratio of Ormat Technologies Inc has fluctuated over the past five years. In 2023, the ratio stands at 2.25, which indicates that the company's level of debt relative to its equity is 2.25 times. This suggests that the company relies more on debt financing compared to equity financing.
The trend in the financial leverage ratio shows some variability, with peaks in 2022 (2.47) and 2021 (2.39) indicating increased leverage during those years. In contrast, the ratio decreased in 2020 (2.15) before rising again in 2019 (2.33).
Overall, the financial leverage ratio for Ormat Technologies Inc suggests variations in the company's capital structure and the extent to which it uses debt to finance its operations. It would be important to further analyze the reasons behind these fluctuations and assess the potential implications on the company's financial risk and stability.
Peer comparison
Dec 31, 2023