Avista Corporation (AVA)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	180,000	171,180	155,176	147,334	129,488
Total assets	US$ in thousands	7,941,000	7,702,480	7,417,350	6,853,580	6,402,100
ROA		2.27%	2.22%	2.09%	2.15%	2.02%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $180,000K ÷ $7,941,000K
= 2.27%

As an analyst reviewing Avista Corporation's return on assets (ROA) over the past five years, we observe a consistent upward trend from 2.02% as of December 31, 2020, to 2.27% as of December 31, 2024. This indicates an improvement in Avista's ability to generate profits relative to its total assets over the years.

The steady increase in ROA suggests that Avista has been effectively utilizing its assets to generate earnings. This could be attributed to efficient management of resources, strategic investments, or improved operational efficiency within the company.

It is worth noting that while the overall trend shows positive growth in ROA, there was a slight dip in 2022 compared to the preceding and subsequent years. However, the subsequent years saw a rebound and growth in ROA, indicating resilience and the ability to recover from temporary setbacks.

Overall, the increasing trend in Avista Corporation's return on assets reflects positively on the company's financial performance and asset utilization efficiency. This trend could be a favorable indicator for investors and stakeholders, showcasing the company's ability to generate returns from its assets effectively.