Avista Corporation (AVA)

Debt-to-equity 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-equity ratio		0.44	0.98	0.88	0.99	0.95

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,100,000K ÷ $2,485,320K
= 0.44

The debt-to-equity ratio of Avista Corp. has shown a fluctuating trend over the past five years. The ratio increased from 1.13 in 2019 to 1.22 in 2022, indicating a higher level of debt relative to equity during that period. However, there was a slight decrease in the ratio to 1.20 in 2023, suggesting a slight improvement in the company's leverage position compared to the previous year. Overall, the ratios have remained above 1, indicating that Avista Corp. relies more on debt financing than equity in its capital structure. Investors and creditors may closely monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.