Avista Corporation (AVA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 656,000 | 661,842 | 721,802 | 434,473 | 343,977 |
| Total current liabilities | US$ in thousands | 771,000 | 775,205 | 964,534 | 913,106 | 505,879 |
| Current ratio | 0.85 | 0.85 | 0.75 | 0.48 | 0.68 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $656,000K ÷ $771,000K
= 0.85
The current ratio for Avista Corporation has displayed fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 0.68, indicating that the company had $0.68 in current assets for every $1 in current liabilities. By December 31, 2021, the current ratio declined to 0.48, suggesting a potential liquidity challenge as the ratio dropped below 1.
However, there was an improvement in the company's liquidity position in the following years. The current ratio increased to 0.75 by December 31, 2022, and further to 0.85 by December 31, 2023, showing that Avista Corporation had more current assets available to cover its current obligations.
Maintaining the same current ratio of 0.85 by December 31, 2024, indicates a consistent liquidity position, with the company continuing to have sufficient current assets to meet its short-term liabilities. Overall, while there were fluctuations, Avista Corporation managed to strengthen its liquidity position over the years, which is a positive indicator for its financial health.
Peer comparison
Dec 31, 2024