Avista Corporation (AVA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	257,690	190,242	228,232	232,700	210,389
Total assets	US$ in thousands	7,702,480	7,417,350	6,853,580	6,402,100	6,082,460
Operating ROA		3.35%	2.56%	3.33%	3.63%	3.46%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $257,690K ÷ $7,702,480K
= 3.35%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating operating income from its assets. Avista Corp.'s Operating ROA fluctuated over the past five years, ranging from 2.56% to 3.78%. In 2023, Avista Corp. reported an Operating ROA of 3.35%, which indicates that the company generated approximately $0.0335 in operating income for every $1 of assets. While this represents an improvement from the previous year, it is slightly below the Operating ROA from two years ago.

The trend in Avista Corp.'s Operating ROA suggests some variability in the company's ability to efficiently utilize its assets to generate operating income. It is essential for investors and stakeholders to monitor this ratio over time to assess Avista Corp.'s operational performance and asset utilization effectiveness. Further analysis, including comparison with industry peers and identifying factors affecting operating efficiency, would provide a more comprehensive understanding of Avista Corp.'s financial health and performance.