Avista Corporation (AVA)

Return on total capital

		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 interest and tax (EBIT) (ttm)	US$ in thousands	257,690	222,084	203,399	183,874	190,242	197,025	201,837	209,306	228,232	244,944	249,228	252,402	233,810	226,723	229,043	243,206	331,365	331,294	336,423	343,290
Long-term debt	US$ in thousands	1,100,000	1,100,000	1,107,000	2,530,010	2,281,010	2,280,800	2,287,610	2,294,180	1,898,370	1,898,240	1,758,960	2,008,740	2,008,530	2,009,300	1,844,160	963,500	1,843,770	1,053,500	1,053,500	1,053,500
Total stockholders’ equity	US$ in thousands	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	1,939,280	1,893,570	1,884,030	1,867,310
Return on total capital		7.19%	6.33%	5.80%	3.74%	4.12%	4.36%	4.46%	4.62%	5.63%	6.12%	6.51%	6.19%	5.79%	5.68%	6.00%	8.32%	8.76%	11.24%	11.45%	11.75%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $257,690K ÷ ($1,100,000K + $2,485,320K)
= 7.19%

Analyzing the return on total capital for Avista Corp. over the past eight quarters reveals fluctuations in the company's performance. The return on total capital ranged from 3.50% to 4.72% during this period.

The company's return on total capital has generally been relatively stable, with the highest return observed in Q4 2023 at 4.72% and the lowest in Q1 2023 at 3.50%. This indicates that Avista Corp. has been able to generate a moderate return relative to its total capital investment.

While the variations in the return on total capital may be influenced by factors such as profitability, capital structure, and operational efficiency, a consistent analysis of these fluctuations may provide insights into the company's overall financial health and the effectiveness of its capital utilization strategies. Further analysis of other financial ratios and qualitative factors is necessary to gain a comprehensive understanding of Avista Corp.'s financial performance.