American Woodmark Corporation (AMWD)
Solvency ratios
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.75 | 1.74 | 2.11 | 2.19 | 2.42 |
American Woodmark Corporation has consistently maintained a low level of debt relative to its assets, capital, and equity over the past five years, with debt-to-assets, debt-to-capital, and debt-to-equity ratios all at 0.00. This indicates that the company operates with essentially no debt in its capital structure.
However, it is important to note the trend in the financial leverage ratio, which measures the extent to which a company relies on debt financing in relation to its equity. American Woodmark Corporation's financial leverage ratio has decreased from 2.42 in 2019 to 1.75 in 2024, with a small fluctuation in between. This downward trend suggests that the company has been reducing its reliance on debt financing over the years.
Overall, these solvency ratios indicate that American Woodmark Corporation has a strong financial position with minimal debt obligations, showcasing its ability to meet its financial obligations and operate with stability.
Coverage ratios
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 154.59 | 141.15 | 37.16 | 44.58 | 52.02 |
American Woodmark Corporation's interest coverage has shown a general increasing trend over the past five years, indicating the company's improved ability to meet its interest payment obligations. The interest coverage ratio has consistently been above 1, suggesting that the company's operating income is more than sufficient to cover its interest expenses.
The significant increase in interest coverage from 2019 to 2024 reflects a positive trend in the company's financial health and stability. A high interest coverage ratio like the one seen in 2024 (154.59) indicates a strong ability to meet interest payments from operating profits. This is a favorable sign for creditors and investors, as it suggests lower risk of default on debt obligations.
Overall, American Woodmark Corporation's interest coverage ratio demonstrates a healthy financial position and efficient management of debt, which can contribute to its long-term sustainability and growth prospects.