Ormat Technologies Inc (ORA)
Interest coverage
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 229,263 | 168,326 | 169,600 | 230,412 | 214,092 |
Interest expense | US$ in thousands | 98,881 | 87,743 | 82,658 | 77,953 | 80,384 |
Interest coverage | 2.32 | 1.92 | 2.05 | 2.96 | 2.66 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $229,263K ÷ $98,881K
= 2.32
The interest coverage of Ormat Technologies Inc has fluctuated over the past five years. The company's ability to cover its interest expenses has been relatively stable, ranging from 1.96 to 2.54.
In 2020, the interest coverage was at its highest at 2.54, indicating that the company earned 2.54 times its interest expenses during that year. However, in 2023, the interest coverage dropped to 1.96, which may suggest a relative decrease in the company's ability to cover its interest payments compared to the previous year.
Overall, the trend in Ormat Technologies Inc's interest coverage ratio shows that the company has been able to consistently generate earnings to cover its interest expenses, albeit with some fluctuations. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023