Avista Corporation (AVA)

Activity ratios

Short-term

Turnover 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
Inventory turnover 3.96 4.25 1.16 -0.06 -0.06 0.06 0.07 0.09 0.08 0.15 0.16 0.22 0.20 0.32 0.32 0.38 0.62 0.49 0.50 0.57
Receivables turnover 5.40 10.63 10.46 7.05 4.65 8.65 8.01 6.54 4.69 8.17 8.76 6.81 4.64 11.35 11.24 8.63 5.58 12.46 11.82 8.13
Payables turnover 4.43 5.86 1.30 -0.06 -0.03 0.06 0.06 0.06 0.05 0.13 0.13 0.15 0.13 0.26 0.20 0.25 0.38 0.36 0.42 0.32
Working capital turnover — — — 33.71 — — — — — — — — — — — — — — — —

Avista Corp.'s activity ratios provide insights into how effectively the company is managing its assets and liabilities to generate revenue.

1. Inventory turnover: The company's inventory turnover has been relatively stable over the past eight quarters, ranging from 4.39 to 7.29. This suggests that Avista Corp. is efficiently managing its inventory levels and turning over its inventory multiple times within a given period.

2. Receivables turnover: Avista Corp.'s receivables turnover has shown some variability, ranging from 5.97 to 10.63 over the past eight quarters. Higher turnover indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient credit and collection policies.

3. Payables turnover: The payables turnover ratio has also fluctuated, ranging from 3.63 to 7.01 over the same period. A higher payables turnover ratio implies that the company is paying its suppliers more quickly, which can positively impact working capital management.

4. Working capital turnover: The data indicates that there is no available information on the working capital turnover for the first three quarters of 2023. However, in Q1 2023, the working capital turnover was exceptionally high at 33.71. This suggests that Avista Corp. efficiently utilized its working capital to generate revenue during that period.

Overall, the activity ratios reflect Avista Corp.'s efficiency in managing its assets and liabilities to support its operational activities and generate revenue. Monitoring these ratios over time can help stakeholders assess the company's financial health and operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 92.09 85.92 313.86 — — 6,541.54 5,607.57 4,024.64 4,403.12 2,362.61 2,223.58 1,682.36 1,782.61 1,155.55 1,127.83 950.37 586.92 752.44 728.61 641.48
Days of sales outstanding (DSO) days 67.62 34.33 34.91 51.78 78.58 42.17 45.59 55.83 77.91 44.68 41.68 53.62 78.65 32.16 32.47 42.31 65.36 29.28 30.87 44.89
Number of days of payables days 82.46 62.33 280.75 — — 5,969.19 6,430.43 5,906.48 6,916.29 2,785.83 2,794.93 2,479.86 2,817.59 1,401.16 1,853.81 1,478.58 971.57 1,014.90 868.18 1,149.28

Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. Avista Corp.'s DOH has been fluctuating over the quarters, showing an overall increasing trend, with a significant increase from Q1 2023 to Q4 2023. This may indicate a potential issue with managing inventory levels efficiently.

Days of Sales Outstanding (DSO) indicates how long it takes for the company to collect payments from its customers. Avista Corp.'s DSO has been varying quarter over quarter, with a notable decrease in Q2 and Q3 2023 followed by an increase in Q4 2023. The sudden decrease may suggest an improvement in collection efforts, which was followed by a potential slackening in Q4 2023.

Number of Days of Payables highlights the average number of days the company takes to pay its suppliers. Avista Corp.'s days of payables have shown significant fluctuations, with a substantial decrease in Q4 2022 followed by a gradual increase in the subsequent quarters. The reduction in days of payables in Q4 2022 could indicate a more aggressive approach to settling supplier payments, which was then normalized in the following quarters.

In sum, Avista Corp. should closely monitor its inventory management practices to reduce the days of inventory on hand. Additionally, maintaining a balance between collection efforts and payment terms with suppliers is essential for optimizing its working capital efficiency.

Long-term

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
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
Total asset turnover 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.21 0.22 0.22 0.23 0.23 0.23

The long-term activity ratios of Avista Corp., as indicated by the fixed asset turnover and total asset turnover ratios, have remained relatively stable over the past eight quarters.

The fixed asset turnover ratio has consistently hovered around 0.31 since Q1 2022, indicating that Avista Corp. generates $0.31 in revenue for every dollar of fixed assets. This suggests that the company is efficiently utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio has remained steady at 0.23 for the same period, showing that Avista Corp. is generating $0.23 in revenue for every dollar of total assets. This indicates that the company is effectively leveraging its total assets to generate sales.

Overall, the stable and consistent nature of both the fixed asset turnover and total asset turnover ratios suggests that Avista Corp. has been maintaining efficient asset utilization in its operations over the past two years.