American Woodmark Corporation (AMWD)
Financial leverage ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,570,570 | 1,593,860 | 1,518,800 | 1,632,500 | 1,636,510 |
| Total stockholders’ equity | US$ in thousands | 915,998 | 910,376 | 873,788 | 772,883 | 742,896 |
| Financial leverage ratio | 1.71 | 1.75 | 1.74 | 2.11 | 2.20 |
April 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,570,570K ÷ $915,998K
= 1.71
The financial leverage ratio of American Woodmark Corporation has demonstrated a consistent decline over the analyzed period from April 30, 2021, to April 30, 2025. Specifically, the ratio decreased from 2.20 in 2021 to 2.11 in 2022, indicating a slight reduction in the degree of leverage employed during that year. This downward trend continued more markedly through 2023, with the ratio declining to 1.74, suggesting that the company has been reducing its reliance on debt relative to equity. In the subsequent years, 2024 and 2025, the ratio remained relatively stable at approximately 1.75 and 1.71, respectively, signaling a plateau in leverage levels. Overall, the trend points to a gradual deleveraging process, which could reflect management’s strategic efforts to lower financial risk or a cautious approach to debt management amid varying market conditions.