Avista Corporation (AVA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,751,550	1,710,210	1,438,940	1,321,890	1,345,620
Property, plant and equipment	US$ in thousands	7,979,010	7,725,840	7,371,980	6,985,560	6,627,930
Fixed asset turnover		0.22	0.22	0.20	0.19	0.20

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,751,550K ÷ $7,979,010K
= 0.22

The fixed asset turnover ratio for Avista Corp. has shown consistency over the past five years, ranging between 0.26 to 0.31. This ratio reflects how efficiently the company generates revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

In this case, Avista Corp. has maintained a relatively stable fixed asset turnover ratio, hovering around the range of 0.26 to 0.31. While the ratio has not shown significant improvement or decline, it suggests that the company has been able to consistently generate revenue relative to its investment in fixed assets.

It is worth noting that a fixed asset turnover ratio below 1 may indicate inefficiencies in asset utilization or potentially underutilized fixed assets. However, the stability of Avista Corp.'s ratio within this range implies a consistent level of efficiency in utilizing its fixed assets to generate sales revenue over the years. Further analysis and comparison with industry benchmarks may provide additional insights into Avista Corp.'s asset management efficiency.