American Woodmark Corporation (AMWD)
Debt-to-assets ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 1,593,860 | 1,518,800 | 1,632,500 | 1,654,400 | 1,529,930 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
April 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,593,860K
= 0.00
Based on the historical data provided, American Woodmark Corporation has consistently maintained a debt-to-assets ratio of 0.00 over the past five years, including in the most recent fiscal year ending April 30, 2024. This ratio indicates that the company has not utilized debt as a source of financing to fund its operations or investments in assets during this period.
A debt-to-assets ratio of 0.00 implies that the company's total debt is equal to zero relative to its total assets. This could suggest that American Woodmark has primarily relied on equity financing or retained earnings to support its business activities, rather than taking on debt obligations.
While a low or zero debt-to-assets ratio can reflect a conservative financial approach and reduced financial risk, it's important to consider the potential implications for the company's growth and strategic flexibility. Companies with no debt may be limiting their ability to leverage financial leverage for expansion or to take advantage of new investment opportunities.
Overall, the consistent maintenance of a zero debt-to-assets ratio by American Woodmark Corporation over the past five years indicates a deliberate capital structure choice and financial strategy that prioritizes stability and financial independence. However, further analysis of the company's overall financial health, profitability, and future growth prospects would provide a more comprehensive assessment of its financial strength.