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.