AeroVironment Inc (AVAV)
Cash ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 73,301 | 132,859 | 77,231 | 148,741 | 255,142 |
| Short-term investments | US$ in thousands | — | — | 24,716 | 31,971 | 47,507 |
| Total current liabilities | US$ in thousands | 144,879 | 121,334 | 101,391 | 96,185 | 66,953 |
| Cash ratio | 0.51 | 1.09 | 1.01 | 1.88 | 4.52 |
April 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($73,301K
+ $—K)
÷ $144,879K
= 0.51
The cash ratio of AeroVironment Inc has shown a declining trend over the past five years, with the ratio decreasing from 4.52 in April 2020 to 0.51 in April 2024. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, indicates a decrease in the company's liquidity position over the years.
A cash ratio of 0.51 in April 2024 suggests that AeroVironment Inc had $0.51 in cash and cash equivalents for every $1 of current liabilities. This indicates a lower level of liquidity compared to previous years, implying that the company may have limited capacity to meet its short-term obligations solely with its cash reserves.
It is essential for AeroVironment Inc to carefully manage its liquidity position and ensure it has sufficient cash on hand to cover its short-term liabilities efficiently. The declining trend in the cash ratio highlights the importance of monitoring the company's cash management practices and working capital position to maintain financial stability and meet its obligations effectively.
Peer comparison
Apr 30, 2024