Avista Corporation (AVA)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	180,000	196,975	193,204	187,830	171,180	165,001	144,487	138,456	155,176	128,097	148,261	150,882	147,334	155,192	145,702	149,081	129,488	121,529	121,743	129,609
Total stockholders’ equity	US$ in thousands	2,591,000	2,528,090	2,527,240	2,520,500	2,485,320	2,409,890	2,400,420	2,385,310	2,334,670	2,234,850	2,237,490	2,233,300	2,154,740	2,101,640	2,069,970	2,068,590	2,029,730	1,982,850	1,975,040	1,959,100
ROE		6.95%	7.79%	7.64%	7.45%	6.89%	6.85%	6.02%	5.80%	6.65%	5.73%	6.63%	6.76%	6.84%	7.38%	7.04%	7.21%	6.38%	6.13%	6.16%	6.62%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $180,000K ÷ $2,591,000K
= 6.95%

The return on equity (ROE) of Avista Corporation has shown fluctuations over the past few years. From March 2020 to December 2024, the ROE varied between 5.73% and 7.79%.

Overall, the ROE trend displays some level of inconsistency, with the highest ROE observed in September 2024 at 7.79% and the lowest in March 2023 at 5.80%. This variability indicates that Avista Corporation's ability to generate profit from shareholders' equity has been somewhat unstable during this period.

It is essential for Avista Corporation to analyze the factors influencing these fluctuations in ROE to maintain a stable and satisfactory return for its shareholders. Management should focus on strategies that can improve profitability and efficiency to enhance the company's overall financial performance in the future.