Avista Corporation (AVA)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	30,000	9,124	14,647	12,274	35,003	8,630	15,704	10,596	13,428	14,363	21,619	203,598	22,168	19,224	39,027	21,647	14,196	84,747	116,394	18,919
Short-term investments	US$ in thousands	—	—	—	—	3,667	223,797	220,586	212,166	8,536	—	—	—	—	—	—	1,743	—	—	—	—
Total current liabilities	US$ in thousands	771,000	700,155	624,766	580,280	775,205	583,464	541,163	604,587	964,534	685,200	553,401	641,925	913,106	799,186	891,909	492,799	505,879	474,839	656,562	565,806
Cash ratio		0.04	0.01	0.02	0.02	0.05	0.40	0.44	0.37	0.02	0.02	0.04	0.32	0.02	0.02	0.04	0.05	0.03	0.18	0.18	0.03

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($30,000K + $—K) ÷ $771,000K
= 0.04

The cash ratio of Avista Corporation has shown fluctuations over the past few years. From March 31, 2020, to June 30, 2022, the ratio remained relatively low, ranging between 0.03 and 0.18, indicating that the company had limited cash reserves compared to its current liabilities during this period.

However, there was a significant increase in the cash ratio from March 31, 2022, reaching 0.32, and continuing to rise to 0.44 by June 30, 2023. This improvement suggests that Avista Corporation increased its cash holdings relative to its short-term obligations.

Subsequently, the cash ratio started to decline again, dropping to 0.01 by September 30, 2024. This decrease may indicate a reduction in cash reserves in comparison to the company's immediate liabilities.

Overall, analyzing the cash ratio of Avista Corporation reveals varying levels of liquidity over time, with periods of stronger cash positions followed by potential declines in liquidity. Investors and stakeholders should monitor the company's ability to maintain adequate cash reserves to meet its short-term financial obligations effectively.