Avista Corporation (AVA)

Short-term

Turnover ratios

The activity ratios for Avista Corporation provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells its average inventory in a given period. Avista Corporation's inventory turnover has fluctuated over the years, from 5.91 in 2020 to 4.13 in 2024. A higher inventory turnover indicates efficient management of inventory levels, while a lower ratio may suggest overstocking or slow sales.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently a company collects its accounts receivable during a specific period. The data provided shows that Avista Corporation did not provide information on its receivables turnover from 2020 to 2024. This could imply that information about the company's accounts receivable management is not available.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. Similar to receivables turnover, Avista Corporation did not disclose its payables turnover from 2020 to 2024. Without this information, it is challenging to assess how efficiently the company manages its accounts payables.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company uses its working capital to generate sales revenue. Avista Corporation did not provide data on its working capital turnover for the years 2020 to 2024. This lack of information hinders the ability to assess the company's effectiveness in utilizing its working capital.

In conclusion, while the inventory turnover data suggests some fluctuations in Avista Corporation's inventory management efficiency, the absence of information on receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data for Avista Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, ranging from a low of 53.41 days on December 31, 2022, to a high of 88.28 days on December 31, 2024. A higher DOH value indicates that Avista Corporation is holding inventory for a longer period, which may tie up resources and increase storage costs.

2. Days of Sales Outstanding (DSO):
- The data provided shows that DSO values are not available for any of the years, indicating that specific information on how long it takes the company to collect revenue from its sales is not provided. DSO is a useful metric for evaluating the efficiency of the company's accounts receivable management.

3. Number of Days of Payables:
- Similarly, the data does not provide information on the number of days of payables for any of the years. Tracking the number of days it takes for Avista Corporation to pay its suppliers can give insight into the company's payment practices and financial health.

In conclusion, while the Days of Inventory on Hand ratio provides some insights into Avista Corporation's inventory management efficiency, we lack data on Days of Sales Outstanding and Number of Days of Payables to conduct a comprehensive analysis of the company's activity ratios.

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Long-term

Avista Corporation's long-term activity ratios show a gradual improvement in efficiency over the years based on the fixed asset turnover and total asset turnover ratios.

The fixed asset turnover ratio has increased from 0.26 in 2020 to 0.31 in 2022, indicating that the company generates more revenue per dollar invested in fixed assets. However, data is unavailable for 2023 and 2024, limiting a complete trend analysis for this ratio.

Similarly, the total asset turnover ratio has remained relatively stable, increasing slightly from 0.21 in 2020 to 0.24 in 2024. This indicates that Avista Corporation is generating more revenue relative to its total assets over time.

Overall, the improvement in both fixed asset turnover and total asset turnover ratios suggests that Avista Corporation is utilizing its assets more efficiently to generate revenue and may be effectively managing its long-term assets. It would be beneficial to monitor the trend in the upcoming years to assess the company's continued performance in terms of asset utilization.