Avista Corporation (AVA)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Total assets US$ in thousands 7,941,000 7,780,880 7,683,770 7,648,980 7,702,480 7,470,030 7,371,320 7,393,930 7,417,350 7,055,800 6,937,710 7,036,010 6,853,580 6,731,480 6,646,300 6,399,500 6,402,100 6,283,130 6,302,620 6,174,000
Total stockholders’ equity US$ in thousands 2,591,000 2,528,090 2,527,240 2,520,500 2,485,320 2,409,890 2,400,420 2,385,310 2,334,670 2,234,850 2,237,490 2,233,300 2,154,740 2,101,640 2,069,970 2,068,590 2,029,730 1,982,850 1,975,040 1,959,100
Financial leverage ratio 3.06 3.08 3.04 3.03 3.10 3.10 3.07 3.10 3.18 3.16 3.10 3.15 3.18 3.20 3.21 3.09 3.15 3.17 3.19 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 of Avista Corporation has been relatively stable over the past few years, ranging between 3.03 to 3.21. The ratio indicates that the company relies more on debt financing compared to equity to fund its operations and investments. A higher financial leverage ratio suggests a higher level of financial risk due to increased debt obligations, which can impact the company's ability to meet its financial obligations, especially in challenging economic conditions. It is important for Avista Corporation to carefully manage its debt levels to maintain a healthy balance between debt and equity financing and ensure long-term financial stability.