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.
Peer comparison
Dec 31, 2023