Avista Corporation (AVA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,941,000 | 7,702,480 | 7,417,350 | 6,853,580 | 6,402,100 |
| Total stockholders’ equity | US$ in thousands | 2,591,000 | 2,485,320 | 2,334,670 | 2,154,740 | 2,029,730 |
| Financial leverage ratio | 3.06 | 3.10 | 3.18 | 3.18 | 3.15 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,941,000K ÷ $2,591,000K
= 3.06
The financial leverage ratio measures the extent to which a company is using debt to finance its operations and growth. The trend of Avista Corporation's financial leverage ratio over the past five years shows a fluctuating pattern.
As of December 31, 2020, the financial leverage ratio stood at 3.15, indicating that the company had $3.15 in debt for every $1 of equity. This ratio increased slightly to 3.18 by the end of 2021 and remained at the same level through 2022.
However, by December 31, 2023, there was a decrease in the financial leverage ratio to 3.10, suggesting a potential reduction in the company's reliance on debt financing. This trend continued into 2024, with the ratio further decreasing to 3.06.
Overall, the fluctuation in Avista Corporation's financial leverage ratio over the years may indicate varying levels of risk associated with the company's capital structure. Investors and analysts may monitor these changes to assess the company's ability to manage its debt obligations and leverage effectively to support growth and profitability.
Peer comparison
Dec 31, 2024