Avista Corporation (AVA)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	6,082,460	5,964,780	5,877,930	5,889,980
Total stockholders’ equity	US$ in thousands	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	1,939,280	1,893,570	1,884,030	1,867,310
Financial leverage ratio		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	3.14	3.15	3.12	3.15

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 remained relatively stable over the past eight quarters, ranging from 3.07 to 3.18. This indicates that the company is relying on a consistent level of debt financing to support its operations and investments.

With a financial leverage ratio consistently above 3, Avista Corp. is considered to have a higher level of financial leverage, suggesting that a significant portion of its assets are funded by debt rather than equity. Investors and creditors may view this as a potential risk factor, as higher leverage can amplify both returns and losses.

Overall, the stability of Avista Corp.'s financial leverage ratio suggests a consistent approach to capital structure management, but stakeholders should closely monitor the company's ability to service its debt obligations and manage financial risk in the long term.