Avista Corporation (AVA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 257,690 | 190,242 | 228,232 | 232,700 | 331,365 |
| Interest expense | US$ in thousands | 5,156 | 5,407 | 5,549 | 6,612 | 103,012 |
| Interest coverage | 49.98 | 35.18 | 41.13 | 35.19 | 3.22 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $257,690K ÷ $5,156K
= 49.98
The interest coverage ratio for Avista Corp. has shown fluctuations over the past five years. In 2023, the interest coverage ratio improved to 2.06 from 1.71 in 2022, indicating the company's ability to cover its interest expenses increased. However, it was lower compared to 2021 when it was 2.31. The interest coverage ratio has been relatively consistent in 2020 and 2019 at 2.38 and 2.39 respectively.
Overall, the trend in Avista Corp.'s interest coverage ratio suggests that the company has been able to manage its interest obligations effectively, with some fluctuations reflecting changes in its financial performance and debt levels from year to year.
Peer comparison
Dec 31, 2023