Avista Corporation (AVA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 306,000 | 257,690 | 190,242 | 228,232 | 232,700 |
| Revenue | US$ in thousands | 1,938,000 | 1,751,550 | 1,710,210 | 1,438,940 | 1,321,890 |
| Operating profit margin | 15.79% | 14.71% | 11.12% | 15.86% | 17.60% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $306,000K ÷ $1,938,000K
= 15.79%
To analyze the operating profit margin of Avista Corporation over the years, we look at the data provided:
- December 31, 2020: 17.60%
- December 31, 2021: 15.86%
- December 31, 2022: 11.12%
- December 31, 2023: 14.71%
- December 31, 2024: 15.79%
The operating profit margin represents the company's operating income as a percentage of its total revenue. A higher operating profit margin indicates that the company is efficient in controlling its operating expenses relative to its revenue.
From the data, we observe a fluctuation in Avista Corporation's operating profit margin over the years. In 2020, the operating profit margin was 17.60%, indicating a relatively healthy level of profitability. However, there was a decline in 2021 to 15.86%, suggesting a decrease in efficiency in managing operating expenses.
The operating profit margin decreased significantly to 11.12% in 2022, which could indicate challenges in controlling costs or a decrease in revenue compared to the previous year. The company managed to improve its operating profit margin in 2023 to 14.71%, showing some recovery.
By 2024, Avista Corporation's operating profit margin increased further to 15.79%, suggesting improved operational efficiency and profitability compared to the previous year.
Overall, while there have been fluctuations in Avista Corporation's operating profit margin over the years, the company has shown resilience and the ability to adjust its operations to maintain profitability. Monitoring this ratio over time can provide insights into the company's operational performance and efficiency in managing costs.
Peer comparison
Dec 31, 2024