Avista Corporation (AVA)

Liquidity ratios

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
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
Quick 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
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

Avista Corporation's liquidity ratios have shown some fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been below 1, indicating potential liquidity challenges. However, there has been an improving trend since March 31, 2022, with the current ratio increasing steadily to 0.85 as of December 31, 2024. This suggests that Avista Corporation may have strengthened its liquidity position over this period.

In contrast, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has been quite low throughout the period. The quick ratio has shown some variability, ranging from as low as 0.01 to a high of 0.44. This indicates that the company may have a limited ability to meet its short-term obligations using its most liquid assets.

Similarly, the cash ratio, which focuses solely on a company's ability to cover its current liabilities with cash and cash equivalents, has also remained relatively low. This ratio has fluctuated within a narrow range, suggesting that Avista Corporation may have a relatively small proportion of its current liabilities covered by cash on hand.

Overall, while there have been some improvements in Avista Corporation's liquidity ratios in recent periods, the company may still need to work on enhancing its ability to meet short-term financial obligations efficiently. Continued monitoring of these ratios will be important to assess the company's liquidity position and financial health going forward.

Additional liquidity measure

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 conversion cycle days 46.52 44.78 42.82 45.41 56.35 49.99 58.24 50.07 53.41 68.09 62.67 50.76 62.21 70.79 70.88 57.13 61.78 64.27 59.72 47.89

The cash conversion cycle of Avista Corporation has shown fluctuations over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates strong liquidity and efficient management of working capital.

From March 31, 2020, to December 31, 2024, Avista Corporation's cash conversion cycle ranged from a low of 42.82 days to a high of 70.88 days. The company experienced a decrease in the cash conversion cycle in the most recent period, reaching 46.52 days by December 31, 2024. This suggests that Avista Corporation has been able to manage its inventory, accounts receivable, and accounts payable more efficiently, leading to a quicker conversion of investments into cash.

Overall, a declining trend in the cash conversion cycle reflects improvements in working capital management and a more effective cash flow cycle for Avista Corporation. The company's ability to sustain or further reduce its cash conversion cycle in the future will be critical to maintaining liquidity and supporting its operational activities.