Avista Corporation (AVA)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,485,320	2,334,670	2,154,740	2,029,730	1,939,280
Debt-to-capital ratio		0.31	0.49	0.47	0.50	0.49

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,100,000K ÷ ($1,100,000K + $2,485,320K)
= 0.31

The debt-to-capital ratio of Avista Corp. has remained relatively stable over the past five years, ranging from 0.53 to 0.55. This ratio measures the proportion of a company's capital structure that is funded by debt compared to equity.

With the ratio hovering around 0.54, it indicates that Avista Corp. has consistently maintained a moderate level of debt relative to its total capital. A ratio above 0.5 suggests that the company relies more on debt financing, while a ratio below 0.5 indicates a more equity-driven capital structure.

Overall, the trend in Avista Corp.'s debt-to-capital ratio suggests a balanced approach to funding its operations and growth initiatives, without over-reliance on debt financing. This stability in the ratio over the years indicates a prudent financial management strategy by the company.