Avista Corporation (AVA)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,100,000	2,281,010	1,898,370	2,008,530	1,843,770
Total assets	US$ in thousands	7,702,480	7,417,350	6,853,580	6,402,100	6,082,460
Debt-to-assets ratio		0.14	0.31	0.28	0.31	0.30

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,100,000K ÷ $7,702,480K
= 0.14

The debt-to-assets ratio of Avista Corp. has shown a gradual increase over the past five years, reflecting a rising level of debt relative to the company's total assets. As of December 31, 2023, the ratio stands at 0.39, indicating that 39% of Avista Corp.'s assets are financed through debt.

This increase in the debt-to-assets ratio may suggest that Avista Corp. has been relying more on debt financing to support its operations and growth initiatives. While a higher debt-to-assets ratio can indicate increased financial leverage, which can amplify returns for shareholders, it also brings higher financial risk as the company has more debt obligations to meet.

It is important for investors and stakeholders to monitor this ratio closely to ensure that Avista Corp. maintains a healthy balance between debt and assets. A higher debt-to-assets ratio may make the company more vulnerable to economic downturns or interest rate hikes, potentially impacting its financial stability and creditworthiness.