Avista Corporation (AVA)
Total 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 |
| Total assets | US$ in thousands | 7,702,480 | 7,417,350 | 6,853,580 | 6,402,100 | 6,082,460 |
| Total asset turnover | 0.23 | 0.23 | 0.21 | 0.21 | 0.22 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,751,550K ÷ $7,702,480K
= 0.23
Total asset turnover is a ratio that measures a company's ability to generate revenue from its investment in assets. For Avista Corp., the total asset turnover has been relatively stable over the past five years, ranging between 0.21 and 0.23. This indicates that, on average, the company is generating approximately $0.21 to $0.23 in revenue for every $1 of assets it holds.
A total asset turnover ratio of less than 1 typically suggests that the company may not be efficiently utilizing its assets to generate revenue. In the case of Avista Corp., the ratio has remained below 1, indicating a lower efficiency in asset utilization.
It is important to note that the interpretation of this ratio may vary across industries, and comparing Avista Corp.'s ratio to industry benchmarks or competitors would provide further insight into the company's performance in this aspect.
Peer comparison
Dec 31, 2023