Avista Corporation (AVA)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- Avista Corporation's inventory turnover ratio fluctuated over the period, ranging from a low of 5.15 to a high of 8.52.
- The company's inventory turnover ratio indicates how efficiently it is managing its inventory levels. A higher ratio suggests that Avista is selling its inventory quickly, which can be a positive sign.
- Overall, the trend in inventory turnover shows some variability but generally reflects a consistent level of inventory management efficiency.

2. Receivables Turnover:
- Data for the receivables turnover ratio is not provided, which makes it difficult to assess how quickly Avista is collecting its accounts receivable.
- Receivables turnover ratio is crucial for understanding the company's ability to convert credit sales into cash.
- Without this data, it is challenging to evaluate Avista's effectiveness in managing its accounts receivable.

3. Payables Turnover:
- Similar to receivables turnover, data for the payables turnover ratio is not available.
- Payables turnover ratio helps in understanding how quickly a company is paying off its suppliers and managing its trade credit.
- The absence of this data limits our ability to assess Avista's payment practices and relationships with its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio for Avista Corporation was notably high at 33.71 for March 31, 2023.
- This high ratio could suggest that Avista efficiently utilizes its working capital to generate sales revenue.
- However, lacking data for the rest of the periods makes it challenging to determine the consistency of this efficiency over time.

In conclusion, while the inventory turnover ratio provides insights into Avista's inventory management efficiency, the lack of data for receivables turnover, payables turnover, and limited data for working capital turnover restricts a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Avista Corporation's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, ranging from a low of 42.82 days to a high of 70.88 days. A lower DOH indicates that the company is managing its inventory efficiently, while a higher DOH may suggest that inventory is being held for a longer period.

Unfortunately, data for the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not available. The DSO ratio would have provided insights into how quickly the company collects its accounts receivable, while the Payables ratio would have shown how long it takes the company to pay its suppliers.

Overall, analyzing these activity ratios can offer valuable insights into Avista Corporation's operational efficiency and effectiveness in managing its working capital.

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Long-term

The fixed asset turnover ratio for Avista Corporation has been relatively stable over the years, fluctuating between 0.26 and 0.31 from December 31, 2020, to June 30, 2023. However, there was a significant spike in the ratio in the following quarter, reaching 5.51, which indicates a sudden increase in the efficiency of utilizing fixed assets to generate sales. The ratio then declined gradually to 5.20 by September 30, 2023, where it remained steady until the end of 2023.

On the other hand, the total asset turnover ratio for Avista Corporation showed a consistent trend of improvement from March 31, 2020, to December 31, 2024, increasing from 0.22 to 0.24. This indicates that the company has been able to generate more sales relative to its total assets over the years.

Overall, while the fixed asset turnover ratio experienced a one-time significant increase followed by stability, the total asset turnover ratio demonstrated a positive trend of improvement, reflecting better efficiency in utilizing both fixed and total assets to generate revenue.