Avista Corporation (AVA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 137,550 | 137,985 | 159,365 | 136,539 | 228,353 |
| Revenue | US$ in thousands | 1,751,550 | 1,710,210 | 1,438,940 | 1,321,890 | 1,345,620 |
| Pretax margin | 7.85% | 8.07% | 11.08% | 10.33% | 16.97% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $137,550K ÷ $1,751,550K
= 7.85%
The pretax margin of Avista Corp. has shown a decreasing trend over the past five years, declining from 16.95% in 2019 to 7.85% in 2023. This indicates a decrease in the company's ability to generate profits before accounting for taxes as a percentage of its total revenue. The decreasing trend could be a cause for concern as it may suggest challenges in cost management, declining revenue, or other operational inefficiencies impacting profitability. Further analysis of the company's financial performance and operational strategies is recommended to better understand the factors driving this downward trend in pretax margin.
Peer comparison
Dec 31, 2023