Ormat Technologies Inc (ORA)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.07	0.26	0.26	0.35	0.39	0.32	0.29	0.31	0.32	0.35	0.35
Debt-to-capital ratio	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.14	0.35	0.36	0.43	0.49	0.44	0.41	0.42	0.43	0.45	0.45
Debt-to-equity ratio	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.16	0.53	0.55	0.76	0.96	0.77	0.71	0.73	0.75	0.82	0.83
Financial leverage ratio	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	2.33	2.36	2.33	2.35

The solvency ratios of Ormat Technologies Inc indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has remained relatively stable around 0.40 to 0.45 over the past eight quarters, suggesting that Ormat Technologies finances a significant portion of its assets through debt.

The Debt-to-capital ratio has followed a similar trend, indicating the proportion of the company's capital structure that is financed by debt. It has ranged from 0.46 to 0.53, with a slight decrease in recent quarters, reflecting a moderate reliance on debt to fund operations and investments.

The Debt-to-equity ratio has fluctuated between 0.87 and 1.12, showing the proportion of the company's assets that are funded by debt compared to equity. The higher values in some quarters suggest Ormat Technologies has a relatively high level of debt compared to equity, which may increase financial risk.

The Financial leverage ratio has ranged from 2.20 to 2.48, indicating the extent to which the company uses debt to finance its assets. A higher ratio implies a higher degree of financial leverage, which can magnify returns but also increase the risk of financial distress.

Overall, the solvency ratios of Ormat Technologies Inc demonstrate a consistent pattern of utilizing debt to support its operations and investments. Investors and analysts should closely monitor these ratios to assess the company's long-term financial health and ability to meet its debt obligations.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.32	1.99	1.98	2.00	1.92	2.22	2.13	2.15	2.05	2.20	2.39	2.59	2.96	2.94	2.90	2.80	2.66	2.71	2.58	2.67

Ormat Technologies Inc's interest coverage ratio has showcased a consistent improving trend over the past eight quarters. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt, with higher ratios indicating a stronger ability to cover interest expenses. Ormat's interest coverage ratio has ranged from 1.96 to 2.22 during this period.

The company's interest coverage ratio has generally been above 2, indicating that Ormat has generated earnings sufficient to cover its interest payments more than twice over. This signifies a healthy financial position regarding its ability to meet its interest obligations.

The recent increase in the interest coverage ratio from 2.07 in Q3 2023 to 2.11 in Q2 2023 and further to 2.22 in Q1 2023 is a positive sign, suggesting an improving ability to service its debt. However, it's important to note that the interest coverage ratio dipped slightly in Q4 2023 to 1.96, although it still remains above 1.5, a common threshold used to indicate adequate coverage.

Overall, based on the data provided, Ormat Technologies Inc appears to have a solid ability to cover its interest expenses, reflecting positively on the company's financial health and sustainability in meeting its debt obligations.