Avista Corporation (AVA)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	171,180	155,176	147,334	129,488	196,979
Total stockholders’ equity	US$ in thousands	2,485,320	2,334,670	2,154,740	2,029,730	1,939,280
ROE		6.89%	6.65%	6.84%	6.38%	10.16%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $171,180K ÷ $2,485,320K
= 6.89%

The return on equity (ROE) for Avista Corp. has remained relatively stable over the past five years, with values ranging from 6.38% to 10.16%. In 2023, the ROE was 6.89%, slightly higher than the previous year's 6.65% but still within the historical range.

While the ROE has not shown significant fluctuations, it is important to note that the downward trend from 10.16% in 2019 to the current 6.89% may indicate a decrease in profitability relative to shareholders' equity. This trend could be a cause for further investigation into the company's efficiency in generating profits from its equity base.

Overall, Avista Corp.'s ROE performance suggests that the company may need to focus on improving its profitability in order to enhance shareholder value in the future.