Avista Corporation (AVA)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	257,690	222,084	203,399	183,874	190,242	197,025	201,837	209,306	228,232	244,944	249,228	252,402	232,700	218,924	220,669	225,511	210,389	214,266	220,467	233,978
Total assets	US$ in thousands	7,702,480	7,470,030	7,371,320	7,393,930	7,417,350	7,055,800	6,937,710	7,036,010	6,853,580	6,731,480	6,646,300	6,399,500	6,402,100	6,283,130	6,302,620	6,174,000	6,082,460	5,964,780	5,877,930	5,889,980
Operating ROA		3.35%	2.97%	2.76%	2.49%	2.56%	2.79%	2.91%	2.97%	3.33%	3.64%	3.75%	3.94%	3.63%	3.48%	3.50%	3.65%	3.46%	3.59%	3.75%	3.97%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ 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 operational efficiency in generating profits from its assets. Avista Corp.'s Operating ROA has shown some fluctuations over the past eight quarters, ranging from 2.49% to 3.35%.

The trend indicates that Avista Corp. has been able to improve its operational efficiency in utilizing its assets more effectively to generate operating income. However, the ratio has not shown a steady upward or downward trend, suggesting some variability in the company's operating performance over time.

While the Operating ROA of 3.35% in Q4 2023 represents a peak in the past eight quarters, the company needs to maintain consistency in its operational efficiency to ensure sustainable profitability. Further analysis of the company's operational activities and asset management strategies may help identify factors influencing the fluctuations in the Operating ROA and potential areas for improvement.