Avista Corporation (AVA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.39% | 100.38% | 99.51% | 98.96% | 96.92% |
| Operating profit margin | 14.71% | 11.12% | 15.86% | 17.60% | 15.64% |
| Pretax margin | 7.85% | 8.07% | 11.08% | 10.33% | 16.97% |
| Net profit margin | 9.77% | 9.07% | 10.24% | 9.80% | 14.64% |
Avista Corp.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin decreased from 69.85% in 2020 to 59.90% in 2023, indicating a lower proportion of revenue retained after accounting for the cost of goods sold. However, the gross profit margin rebounded in 2023 compared to 2022, suggesting potentially improved cost management.
The operating profit margin also experienced fluctuations, with a decrease from 17.60% in 2020 to 14.71% in 2023. This indicates that Avista Corp. is generating less profit from its primary operating activities. Similarly, the pretax margin decreased from 16.95% in 2019 to 7.85% in 2023, which may reflect higher operating expenses or lower revenues relative to the prior year.
The net profit margin, which represents the proportion of revenue that translates into net income, fluctuated from 14.64% in 2019 to 9.77% in 2023. This decline suggests that Avista Corp.'s bottom-line profitability has weakened in recent years.
Overall, Avista Corp.'s profitability ratios indicate a mixed performance, with fluctuations in margins that may be attributed to changes in revenue, costs, or operational efficiencies. Further analysis would be required to understand the specific factors driving these fluctuations and assess the company's overall financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.35% | 2.56% | 3.33% | 3.63% | 3.46% |
| Return on assets (ROA) | 2.22% | 2.09% | 2.15% | 2.02% | 3.24% |
| Return on total capital | 7.19% | 4.12% | 5.63% | 5.76% | 8.76% |
| Return on equity (ROE) | 6.89% | 6.65% | 6.84% | 6.38% | 10.16% |
Avista Corp.'s profitability ratios have shown variability over the past five years.
- Operating return on assets (Operating ROA) measures the company's operating profitability relative to its total assets. Avista Corp. has shown fluctuations in its Operating ROA, with a peak in 2020 at 3.63% but has since declined to 3.35% in 2023.
- Return on assets (ROA) indicates the company's overall profitability in relation to its total assets. Avista Corp.'s ROA has also fluctuated, reaching its highest point in 2019 at 3.24% but has decreased to 2.22% in 2023.
- Return on total capital assesses the company's overall profit generation in relation to its total capital employed. Avista Corp.'s Return on total capital has shown variations, with the highest value in 2020 at 5.36% and slightly decreasing to 4.72% in 2023.
- Return on equity (ROE) evaluates the company's profitability from the perspective of its shareholders' equity. Avista Corp.'s ROE has fluctuated, with the highest value in 2019 at 10.16%, but has since decreased to 6.89% in 2023.
Overall, the company's profitability ratios have exhibited some degree of inconsistency over the past five years, demonstrating the importance of closely monitoring and analyzing financial performance to ensure sustainable and consistent profitability.