Avista Corporation (AVA)

Current 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
Total current assets	US$ in thousands	656,000	525,074	550,860	561,945	661,842	547,220	526,939	655,700	721,802	463,604	416,961	596,076	434,473	356,275	361,954	350,082	343,977	299,662	352,507	274,238
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
Current ratio		0.85	0.75	0.88	0.97	0.85	0.94	0.97	1.08	0.75	0.68	0.75	0.93	0.48	0.45	0.41	0.71	0.68	0.63	0.54	0.48

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $656,000K ÷ $771,000K
= 0.85

Avista Corporation's current ratio has exhibited fluctuations over the periods indicated. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.

From March 2020 to June 2021, the current ratio hovered below 1, indicating potential liquidity challenges. However, there was an improvement from March 2022 onwards, with the current ratio exceeding 1 consistently until December 2024.

The increase in the current ratio from March 2022 suggests that Avista Corporation enhanced its liquidity position and became more capable of meeting its short-term obligations using current assets. A current ratio above 1 is generally seen as a positive sign, indicating a strong liquidity position.

Despite some fluctuations, the trend towards a current ratio above 1 in recent periods may indicate improved financial stability for Avista Corporation. It is important for the company to maintain a healthy current ratio to ensure it can effectively manage its short-term financial commitments.