Avista Corporation (AVA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the data provided, Avista Corporation's solvency ratios indicate a strong financial position with very low levels of debt relative to its assets and capital. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 throughout the periods, suggesting that the company has minimal debt obligations compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio has also been relatively stable over the years, ranging between 3.03 and 3.21. This indicates that Avista Corporation has a moderate level of financial leverage, which is typical for companies operating in the utility industry.
Overall, the solvency ratios of Avista Corporation suggest a conservative approach to capital structure and a strong ability to meet its financial obligations. Investors and creditors may view the company positively due to its low debt levels and stable financial leverage ratio.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.27 | 2.27 | 2.23 | 2.15 | 1.98 | 2.06 | 1.98 | 2.02 | 2.20 | 2.09 | 2.26 | 2.35 | 2.56 | 2.59 | 2.57 | 2.52 | 2.29 | 2.21 | 2.20 | 2.26 |
Avista Corporation's interest coverage ratio has shown fluctuations over the past few years based on the provided quarterly data. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt.
From March 31, 2020, to December 31, 2024, Avista Corporation's interest coverage ratio generally ranged between 1.98 and 2.59. The ratio peaked at 2.59 on September 30, 2021, indicating the company had more than enough earnings to cover its interest expenses. However, the ratio decreased to 1.98 on several occasions, notably on June 30, 2023, and December 31, 2023, suggesting a lower level of earnings relative to interest expenses during those periods.
Overall, the interest coverage ratio for Avista Corporation has demonstrated some volatility but has generally remained within a narrow range, reflecting a moderate ability to cover interest charges with operating earnings. Management should continue monitoring this ratio to ensure the company maintains a healthy level of interest coverage to meet its debt obligations effectively.