AeroVironment Inc (AVAV)
Cash ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,862 | 73,301 | 132,859 | 77,231 | 148,741 |
| Short-term investments | US$ in thousands | — | — | 0 | 24,716 | 31,971 |
| Total current liabilities | US$ in thousands | 172,161 | 144,879 | 121,334 | 101,391 | 96,185 |
| Cash ratio | 0.24 | 0.51 | 1.09 | 1.01 | 1.88 |
April 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,862K
+ $—K)
÷ $172,161K
= 0.24
The cash ratio of AeroVironment Inc has experienced notable fluctuations over the period from April 30, 2021, to April 30, 2025. As of April 30, 2021, the cash ratio stood at 1.88, indicating that the company's cash and cash equivalents were nearly twice its current liabilities, reflecting a strong liquidity position. By April 30, 2022, the ratio declined to 1.01, approaching a more balanced level where cash reserves roughly matched current liabilities, suggestive of a reduction in excess liquidity but still maintaining sufficient short-term liquidity coverage.
In the subsequent year, April 30, 2023, the cash ratio remained relatively stable at 1.09, marginally higher than the previous year, which indicates a slight stabilization of cash holdings relative to current liabilities. However, by April 30, 2024, the ratio had significantly decreased to 0.51, revealing that cash and cash equivalents covered just over half of current liabilities. This decline suggests a substantial reduction in liquid assets relative to short-term obligations, possibly due to increased operational spending, investments, or other cash outflows.
The trend continued into April 30, 2025, with the cash ratio decreasing further to 0.24. This indicates that cash holdings were only a quarter of current liabilities, implying a markedly diminished liquidity buffer. Such a low ratio could point to heightened liquidity risk or a strategic shift in cash management, contingent upon the company's operational or financial strategies.
Overall, the progressive decline in AeroVironment Inc's cash ratio over the analyzed period reflects a transition from a comfortable liquidity position toward a more constrained liquidity stance. This trend warrants further investigation into the company's cash management practices, operational cash flows, and overall short-term financial health to understand the implications of this reduction in cash reserves relative to current liabilities.
Peer comparison
Apr 30, 2025