Avista Corporation (AVA)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	137,550	143,264	126,693	125,473	137,985	119,320	133,895	139,913	159,365	169,901	166,702	159,764	136,539	126,230	125,454	139,498	228,353	228,784	235,492	242,700
Revenue (ttm)	US$ in thousands	1,751,554	1,744,343	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	1,345,622	1,353,284	1,365,527	1,384,013
Pretax margin		7.85%	8.21%	7.35%	7.28%	8.07%	7.31%	8.54%	9.40%	11.08%	12.24%	12.22%	11.88%	10.33%	9.67%	9.52%	10.42%	16.97%	16.91%	17.25%	17.54%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $137,550K ÷ $1,751,554K
= 7.85%

To analyze Avista Corp.'s pre-tax margin, we can observe a trend over the past eight quarters. The pre-tax margin fluctuated between 7.28% and 9.40% during this period. We notice a general downward trend starting from Q1 2022, with a peak at 9.40%, and a subsequent decline to 7.85% in Q4 2023.

The company's pre-tax margin indicates the efficiency of Avista Corp. in managing its operating expenses relative to its revenue before accounting for taxes. The decrease in pre-tax margin over the quarters may suggest challenges in cost control or declining revenues impacting profitability.

It is crucial for Avista Corp. to closely monitor its cost structures and revenue streams to improve its pre-tax margin. This could involve initiatives to optimize operational efficiency, streamline processes, or evaluate pricing strategies to enhance profitability in the future.