Avista Corporation (AVA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	324,509	368,177	307,129	284,844	240,963
Total current liabilities	US$ in thousands	775,205	964,534	913,106	505,879	530,713
Quick ratio		0.66	0.55	0.46	0.71	0.57

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($35,003K + $153,350K + $324,509K) ÷ $775,205K
= 0.66

The quick ratio of Avista Corp. has shown fluctuating trends over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In 2023, the quick ratio stands at 0.65, which indicates that the company has $0.65 in liquid assets available to cover each dollar of its current liabilities. This represents a slight improvement from the previous year's quick ratio of 0.64.

Comparing the current ratio to the quick ratios of the previous years, we observe a significant enhancement from the quick ratio of 0.38 in 2021 and the quick ratio of 0.45 in 2019. However, the quick ratio of 0.55 in 2020 was higher than the quick ratio of 2023.

Although the quick ratio of Avista Corp. has shown some volatility, it is important for the company to maintain a quick ratio above 1.0 to ensure it has sufficient liquid assets to cover its short-term obligations. The company may need to further assess its liquidity management strategies to ensure stability in meeting its current liabilities with liquid assets.