American Woodmark Corporation (AMWD)
Financial leverage ratio
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,570,570 | 1,590,240 | 1,609,880 | 1,623,420 | 1,593,860 | 1,573,840 | 1,534,100 | 1,530,630 | 1,518,800 | 1,564,370 | 1,651,030 | 1,646,210 | 1,632,500 | 1,591,680 | 1,595,740 | 1,589,580 | 1,636,510 | 1,656,870 | 1,672,880 | 1,667,440 |
| Total stockholders’ equity | US$ in thousands | 915,998 | 919,564 | 915,062 | 913,839 | 910,376 | 896,910 | 895,580 | 894,365 | 873,788 | 843,140 | 829,179 | 792,538 | 772,883 | 750,953 | 743,139 | 737,101 | 742,896 | 763,391 | 745,194 | 721,520 |
| Financial leverage ratio | 1.71 | 1.73 | 1.76 | 1.78 | 1.75 | 1.75 | 1.71 | 1.71 | 1.74 | 1.86 | 1.99 | 2.08 | 2.11 | 2.12 | 2.15 | 2.16 | 2.20 | 2.17 | 2.24 | 2.31 |
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 demonstrates a consistent downward trend over the observed period from July 31, 2020, through April 30, 2025. Initially, the ratio stood at 2.31, indicating a moderate level of leverage whereby debt constituted a substantial portion of the company's capital structure. During the subsequent months, the leverage ratio experienced a gradual decline, reaching approximately 1.71 by October 31, 2023. This decline suggests a decreasing reliance on debt financing relative to equity, potentially reflecting efforts to strengthen the company's equity base or a reduction in debt levels.
Throughout the observation period, the ratio displayed minor fluctuations, with a slight uptick starting in the first quarter of 2024, reaching around 1.75, before stabilizing near 1.73 to 1.78 in the later quarters. The overall trend indicates a reduction in leverage, which can imply enhanced financial stability and diminished debt burden. This prudent leverage management may be indicative of strategic shifts toward lower financial risk or improved capacity to sustain operations with less debt exposure.
In summary, American Woodmark Corporation's financial leverage ratio has notably decreased over the analyzed timeframe, reflecting a more conservative capital structure with reduced debt leverage, potentially contributing to a stronger balance sheet and greater financial resilience.