Ormat Technologies has a Cash Ratio of 0.36. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Ormat Technologies's Cash Ratio or its related term are showing as below:
ORA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.32 Max: 1.8
Current: 0.36
During the past 13 years, Ormat Technologies's highest Cash Ratio was 1.80. The lowest was 0.17. And the median was 0.32.
The historical data trend for Ormat Technologies's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Ormat Technologies's Cash Ratio
For the Utilities - Renewable subindustry, Ormat Technologies's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ormat Technologies's Cash Ratio Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Ormat Technologies's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Ormat Technologies's Cash Ratio falls into.
Ormat Technologies Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Ormat Technologies's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ormat Technologies (NYSE:ORA) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Ormat Technologies Cash Ratio Related Terms
Thank you for viewing the detailed overview of Ormat Technologies's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ormat Technologies (Ormat Technologies) Business Description
Ormat Technologies Inc is engaged in the geothermal energy power business. The company is engaged in three business segments: 1) Electricity Segment. where the company develops, builds, owns and operates geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries and sell the electricity generated. 2) Product Segment includes designing, manufacturing and selling equipment for geothermal and recovered energy-based electricity generation and providing services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants. 3) Energy Storage Segment includes owning and operating grid-connected which provide capacity, energy and ancillary services directly to the electric grid.
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