Avista Corporation (AVA)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	423,718	406,914	411,641	570,368	715,267	684,161	998,394	980,870	974,345	970,080	952,292	938,700	941,813	937,953	937,940	940,990	923,382	914,023	905,608	907,354
Revenue (ttm)	US$ in thousands	1,938,000	1,922,590	1,908,372	1,886,237	1,751,452	1,744,241	1,724,163	1,722,792	1,710,207	1,631,862	1,568,423	1,488,112	1,438,936	1,387,555	1,364,194	1,344,531	1,321,891	1,306,027	1,317,151	1,339,371
Gross profit margin		21.86%	21.16%	21.57%	30.24%	40.84%	39.22%	57.91%	56.93%	56.97%	59.45%	60.72%	63.08%	65.45%	67.60%	68.75%	69.99%	69.85%	69.99%	68.76%	67.74%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $423,718K ÷ $1,938,000K
= 21.86%

The gross profit margin of Avista Corporation has shown a declining trend over the past few years, indicating a decrease in the proportion of revenue retained after deducting the cost of goods sold. Beginning at a relatively high level of around 67-70% in 2020 and 2021, the margin gradually decreased to around 57-60% in mid-2023, and then plummeted significantly to around 21-30% by the end of 2024. This decline may suggest challenges in effectively managing production costs or pricing strategies, impacting the company's profitability. It is crucial for Avista Corporation to closely monitor its gross profit margin and implement strategies to improve operational efficiency and maintain sustainable profit margins in the future.