American Woodmark Corporation (AMWD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The data indicates that American Woodmark Corporation maintains a consistent solvency profile characterized by an absence of leverage from debt sources over the observed period. Specifically, the debt-to-assets, debt-to-capital, and debt-to-equity ratios are all recorded as zero at each reporting date from July 31, 2020, through April 30, 2025. This suggests that the company has not utilized debt financing and operates entirely with equity capital.
Furthermore, the financial leverage ratio, which reflects the degree of asset financing through debt relative to equity, exhibits a declining trend over the period. Starting at approximately 2.31 in July 2020, it gradually diminishes to around 1.71 by April 2025. This decline indicates a reduction in the company’s reliance on borrowed funds and a move toward a more conservatively financed capital structure.
Overall, the consistent zero ratios for debt relative measures and the decreasing financial leverage ratio imply that American Woodmark Corporation possesses a robust solvency position, characterized by no short- or long-term debt obligations and a stable, equity-backed capitalization strategy. This financial stance enhances its capacity to withstand economic fluctuations without the added risk associated with leverage.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 13.24 | 14.69 | 17.13 | 18.74 | 19.52 | 17.27 | 13.29 | 11.04 | 8.67 | 9.22 | 4.07 | 1.60 | -0.53 | -2.29 | 4.20 | 5.09 | 5.18 | 5.04 | 4.56 | 4.32 |
The interest coverage ratio for American Woodmark Corporation demonstrates notable fluctuations over the analyzed period from July 2020 through April 2025. Initially, the ratio exhibits a steady increase, starting at 4.32 in July 2020 and reaching a peak of 5.18 by April 2021, indicating a robust ability to cover interest expenses with operating earnings during this period.
Subsequently, the ratio experiences a decline, with intermittent fluctuations, dropping to 4.20 in October 2021 and severely deteriorating into negative territory at January 2022 (-2.29) and April 2022 (-0.53). These negative values suggest that during this interval, the company's earnings before interest and taxes (EBIT) were insufficient to cover interest obligations, signaling potential financial strain or operational challenges.
Post-April 2022, the interest coverage ratio demonstrates significant improvement, rebounding into positive territory and consistently rising to its highest levels in the forecast period, reaching 13.29 in October 2023 and further climbing to 19.52 by April 2024. These elevated ratios imply a strong capacity to meet interest obligations comfortably, reflecting improved profitability or effective debt management.
In the subsequent period, the ratio shows a slight declining trend but remains at elevated levels, with 17.13 in October 2024 and 13.24 in April 2025. This indicates a sustained, healthy ability to cover interest expenses, albeit with some variability.
Overall, the interest coverage ratio for American Woodmark has experienced substantial recovery and growth following a period of financial difficulty. The trend underscores an enhanced financial position, characterized by increased earnings capacity to cover interest expenses, though brief intervals of negative coverage highlight periods of operational or financial stress within the analyzed timeframe.