Ormat Technologies Inc (ORA)

Financial leverage ratio

		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
Total assets	US$ in thousands	5,666,220	5,590,340	5,506,800	5,516,840	5,208,280	5,010,810	5,010,640	5,015,270	4,611,580	4,524,530	4,541,980	4,414,190	4,425,680	4,359,370	3,818,550	3,859,210	3,888,990	3,520,950	3,418,380	3,445,610
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
Financial leverage ratio		2.34	2.34	2.32	2.35	2.25	2.20	2.22	2.30	2.47	2.45	2.48	2.36	2.39	2.38	2.09	2.12	2.15	2.45	2.39	2.45

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,666,220K ÷ $2,425,130K
= 2.34

The financial leverage ratio of Ormat Technologies Inc has shown fluctuations over the past few years, ranging from 2.09 to 2.48. This ratio indicates that the company relies on debt to finance its operations and investments, with a ratio above 1 signifying that the company has more debt than equity in its capital structure.

Ormat's financial leverage ratio peaked at 2.48 in June 2022, possibly indicating an increased reliance on debt during that period. However, the ratio decreased in the following periods, showing a downward trend until September 2023. From September 2023 to December 2024, the ratio stabilized within a narrow range between 2.20 and 2.34.

Overall, Ormat Technologies Inc's financial leverage ratio suggests a moderate level of debt in its capital structure, which may indicate a certain level of risk associated with its financing strategies. It is important for investors and stakeholders to closely monitor the company's leverage ratio to assess its financial health and ability to meet its debt obligations.