Avista Corporation (AVA)

Solvency ratios

	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
Debt-to-assets ratio	0.14	0.15	0.15	0.34	0.31	0.32	0.33	0.33	0.28	0.28	0.26	0.31	0.31	0.32	0.29	0.16	0.30	0.18	0.18	0.18
Debt-to-capital ratio	0.31	0.31	0.32	0.51	0.49	0.51	0.51	0.51	0.47	0.47	0.46	0.49	0.50	0.50	0.48	0.33	0.49	0.36	0.36	0.36
Debt-to-equity ratio	0.44	0.46	0.46	1.06	0.98	1.02	1.02	1.03	0.88	0.90	0.85	0.97	0.99	1.01	0.93	0.49	0.95	0.56	0.56	0.56
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

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Avista Corp. over the past eight quarters, we can make the following observations:

1. Debt-to-assets ratio has been relatively stable, fluctuating between 0.37 and 0.39. This indicates that, on average, 37% to 39% of Avista's assets are financed by debt.

2. Debt-to-capital ratio has also been consistent, hovering around 0.54 to 0.55. This suggests that debt represents approximately 54% to 55% of Avista's total capital structure.

3. Debt-to-equity ratio has shown some variation, ranging from 1.14 to 1.22. While the ratio increased slightly in Q4 2022 to Q1 2023, it remained relatively stable overall, with debt representing between 114% to 122% of Avista's equity.

4. Financial leverage ratio has fluctuated between 3.07 and 3.18. This ratio indicates that Avista's assets are supported by roughly 3 to 3.18 times its equity, showing a moderate level of leverage.

Overall, Avista Corp. has maintained a stable solvency position over the past two years, with consistent levels of debt relative to assets, capital, and equity. It appears that the company has been managing its debt levels effectively, balancing leverage while maintaining its ability to meet long-term financial obligations.

Coverage ratios

	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
Interest coverage	49.98	38.72	36.41	33.54	42.84	45.82	49.23	51.95	53.03	50.85	51.46	51.04	7.70	4.30	2.92	2.35	3.22	3.23	3.33	3.41

The interest coverage ratio for Avista Corp. has shown some fluctuations over the past eight quarters. The company's ability to cover its interest expenses has ranged from a low of 1.55 in Q1 2023 to a high of 2.08 in Q1 2022. Generally, an interest coverage ratio above 1 indicates that the company is able to meet its interest obligations from its operating income.

The downward trend seen in the recent quarters may raise some concerns about Avista Corp.'s ability to cover its interest expenses comfortably. The ratios below 2 in Q4 2023, Q3 2023, Q2 2023, and Q1 2023 suggest that the company's operating income might not be sufficient to cover its interest payments effectively. It's important to monitor this trend closely to ensure that Avista Corp. can meet its debt obligations without facing financial distress.

Overall, the analysis of the interest coverage ratios indicates that Avista Corp. may need to focus on improving its earnings or managing its debt levels to enhance its ability to cover interest expenses consistently in the future.