The business behind the dividend
| Measure | AVA | Median | Formula |
|---|---|---|---|
| Return on equity | 7.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 6.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $-88.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $-101.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 18.0% | 15.0% | Operating income ÷ revenue |
| Net margin | 9.8% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.02x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.46x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.83x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.43x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 7.1% | 6.9% | 6.9% | 6.6% | 6.8% | 6.4% | 10.2% | 7.7% | 6.7% | 8.3% | 6.9% |
| Return on capital employed | 6.5% | 5.9% | 5.0% | 4.1% | 5.3% | 5.8% | 5.5% | 7.4% | 9.1% | 9.0% | 5.8% |
| Operating margin | 18.0% | 15.8% | 14.7% | 11.1% | 15.9% | 17.6% | 15.6% | 18.7% | 20.2% | 20.8% | 15.9% |
| Net margin | 9.8% | 9.3% | 9.8% | 9.1% | 10.2% | 9.8% | 14.6% | 9.8% | 8.0% | 9.5% | 9.8% |
| Debt to equity | 1.02x | 1.01x | 1.06x | 0.98x | 1.00x | 0.99x | 0.98x | 0.99x | 0.86x | 1.02x | 0.99x |
| Current ratio | 0.83x | 0.85x | 0.85x | 0.75x | 0.48x | 0.68x | 0.57x | 0.54x | 0.48x | 0.86x | 0.68x |
| Cash conversion | 2.43x | 2.97x | 2.61x | 0.80x | 1.81x | 2.56x | 2.02x | 2.65x | 3.54x | 2.61x | 2.56x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Avista pays out less than 8 of them. The median for that group is 61.5%, against this company’s 82.4%.
Closest on GAAP earnings
- Oneok (OKE) 76.0%
- DT Midstream (DTM) 76.3%
- Dominion Energy (D) 77.4%
- Kinder Morgan (KMI) 85.2%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →