Ormat Technologies Inc (ORA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Ormat Technologies Inc has consistently maintained a strong solvency position as evidenced by its solvency ratios. The Debt-to-assets ratio has remained at 0.00 throughout the period under review, indicating that the company has not relied on debt to finance its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at 0.00 consistently, demonstrating that the company's capital structure is not significantly leveraged with debt. This suggests a low financial risk associated with the company's operations.
The Financial leverage ratio, which measures the extent to which a company is using debt to finance its assets, has fluctuated slightly over the years but has generally remained at moderate levels, ranging from 2.09 to 2.48. This indicates that Ormat Technologies Inc has a reasonable amount of debt in its capital structure relative to its equity.
Overall, based on the solvency ratios analyzed, Ormat Technologies Inc appears to have a solid financial position with low debt levels and a balanced capital structure, which bodes well for its long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.12 | 1.23 | 1.37 | 1.56 | 1.80 | 1.86 | 3.00 | 3.71 | 3.67 | 3.64 | 3.55 | 3.44 | 4.05 | 4.22 | 3.61 | 3.23 | 3.36 | 3.38 | 3.98 | 4.34 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that a company is more capable of covering its interest obligations.
Based on the provided data for Ormat Technologies Inc, the interest coverage ratio has shown some fluctuations over time.
Initially, the interest coverage ratio stood at around 4.34 in March 2020, indicating a robust ability to cover interest expenses. However, the ratio declined gradually over the next few quarters, reaching a low point of 1.12 in December 2024. This decline suggests a potential decrease in the company's ability to meet its interest obligations relative to its earnings.
The trend of decreasing interest coverage ratios may raise concerns about Ormat Technologies Inc's financial health and its ability to service its debt effectively. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial stability and its capacity to manage its debt levels in the long run.