Avista Corporation (AVA)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,751,554	1,744,343	1,724,163	1,722,792	1,710,207	1,631,862	1,568,423	1,488,112	1,438,936	1,387,555	1,364,194	1,344,531	1,321,891	1,306,027	1,317,151	1,339,371	1,345,622	1,353,284	1,365,527	1,384,013
Property, plant and equipment	US$ in thousands	7,979,010	7,907,540	7,794,480	7,683,050	7,725,840	7,621,110	7,519,890	7,417,640	7,371,980	7,272,230	7,165,010	7,059,340	6,985,560	6,886,770	6,809,160	6,710,860	6,627,930	6,520,830	6,454,630	6,368,670
Fixed asset turnover		0.22	0.22	0.22	0.22	0.22	0.21	0.21	0.20	0.20	0.19	0.19	0.19	0.19	0.19	0.19	0.20	0.20	0.21	0.21	0.22

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,751,554K ÷ $7,979,010K
= 0.22

The fixed asset turnover ratio for Avista Corp. has been relatively stable at around 0.31 for the past four quarters, indicating that the company generates approximately $0.31 in revenue for every $1 invested in fixed assets. This suggests that Avista Corp. is efficiently utilizing its fixed assets to generate sales.

Furthermore, the increment in fixed asset turnover from 0.28 in Q1 2022 to 0.31 in Q4 2023 demonstrates an improvement in the company's efficiency in utilizing its fixed assets to generate revenue over the last two years. This upward trend may imply that Avista Corp. has been able to increase sales relative to its investment in fixed assets, which can be a positive sign for the company's financial performance and operational efficiency.

Overall, the stable and improving fixed asset turnover for Avista Corp. indicates effective management in leveraging its fixed assets to drive revenue growth and potentially maximize shareholder value.