Avista Corporation (AVA)

Operating 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
Operating income (ttm) US$ in thousands 306,000 303,334 292,653 282,205 257,690 262,052 243,367 237,776 244,144 210,959 215,771 209,306 228,232 244,944 249,228 252,402 232,700 218,924 220,669 225,511
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
Operating profit margin 15.79% 15.78% 15.34% 14.96% 14.71% 15.02% 14.12% 13.80% 14.28% 12.93% 13.76% 14.07% 15.86% 17.65% 18.27% 18.77% 17.60% 16.76% 16.75% 16.84%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $306,000K ÷ $1,938,000K
= 15.79%

Avista Corporation's operating profit margin has fluctuated over the observed period. Starting from March 31, 2020, at 16.84%, the margin remained relatively stable until December 31, 2021, when it reached its peak at 17.60%. However, from the first quarter of 2022 onwards, there was a noticeable decline in the operating profit margin, reaching as low as 12.93% by September 30, 2022.

Over the next few quarters, there were fluctuations in the margin, with some improvement seen by December 31, 2024, at 15.79%. It is important to note that the operating profit margin is an important indicator of a company's operating efficiency and financial health, representing the percentage of revenue that translates into profit after accounting for variable costs of production.

The decreasing trend in operating profit margin post-2021 requires further investigation to understand the factors contributing to this decline. Avista Corporation may need to assess its cost structure, pricing strategies, and operational efficiency to improve profitability in the upcoming quarters.