Avista Corporation (AVA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	35,003	13,428	22,168	14,196	9,896
Short-term investments	US$ in thousands	153,350	147,809	91,057	59,318	51,258
Total current liabilities	US$ in thousands	775,205	964,534	913,106	505,879	530,713
Cash ratio		0.24	0.17	0.12	0.15	0.12

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($35,003K + $153,350K) ÷ $775,205K
= 0.24

The cash ratio of Avista Corp. has shown a fluctuating trend over the past five years. The cash ratio increased from 0.11 in 2019 to 0.12 in 2020, indicating a slight improvement in the company's ability to cover its short-term liabilities with its cash holdings. Subsequently, the cash ratio continued to increase to 0.13 in 2021 and then further to 0.34 in 2022, suggesting a strengthened liquidity position.

However, in 2023, the cash ratio decreased to 0.33, indicating a slight decline in the company's ability to cover its short-term obligations with its available cash. Overall, despite the fluctuations, the cash ratio of Avista Corp. has generally improved over the period under consideration, reflecting a potentially stronger liquidity position and the company's ability to meet its short-term financial commitments.