Avista Corporation (AVA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,702,480 | 7,417,350 | 6,853,580 | 6,402,100 | 6,082,460 |
| Total stockholders’ equity | US$ in thousands | 2,485,320 | 2,334,670 | 2,154,740 | 2,029,730 | 1,939,280 |
| Financial leverage ratio | 3.10 | 3.18 | 3.18 | 3.15 | 3.14 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,702,480K ÷ $2,485,320K
= 3.10
The financial leverage ratio of Avista Corp. has shown some fluctuations over the past five years, varying between 3.10 and 3.18. This ratio indicates that, on average, the company has been using debt to finance its operations at a level approximately 3 times higher than its equity. The trend suggests a relatively stable capital structure with a slight increase in leverage from 2020 to 2022, followed by a slight decrease in 2023. It is important to further analyze the components of the company's capital structure and debt management strategy to understand the implications of these variations in the financial leverage ratio.
Peer comparison
Dec 31, 2023