American Woodmark Corporation (AMWD)
Debt-to-capital ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 910,376 | 873,788 | 772,883 | 756,238 | 632,473 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $910,376K)
= 0.00
The debt-to-capital ratio for American Woodmark Corporation has been consistently at 0.00 over the past five years, indicating that the company has no debt relative to its capital structure during this period. This suggests that the company has been financing its operations primarily through equity rather than debt financing. A debt-to-capital ratio of 0.00 signifies a strong financial position with minimal financial risk associated with debt repayment obligations. Additionally, a low or zero debt-to-capital ratio can indicate that the company has a stable financial structure and may have more financial flexibility to pursue strategic initiatives or withstand economic downturns. Overall, the sustained low debt-to-capital ratio for American Woodmark Corporation reflects a prudent and conservative approach to capital structure management.