AeroVironment Inc (AVAV)
Cash ratio
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,862 | 47,000 | 68,960 | 81,162 | 73,301 | 107,694 | 107,694 | 100,908 | 100,908 | 105,871 | 105,871 | 132,859 | 78,276 | 78,276 | 101,417 | 101,417 | 93,183 | 93,183 | 77,231 | 82,528 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 0 | 24,716 | 24,716 | 24,716 | 24,716 | 12,655 | 12,655 | 24,716 | 3,969 |
| Total current liabilities | US$ in thousands | 172,161 | 128,908 | 111,611 | 117,358 | 144,879 | 107,531 | 107,531 | 109,304 | 109,304 | 107,189 | 107,189 | 121,334 | 116,397 | 116,397 | 103,854 | 103,854 | 95,876 | 95,876 | 101,391 | 87,483 |
| Cash ratio | 0.24 | 0.36 | 0.62 | 0.69 | 0.51 | 1.00 | 1.00 | 0.92 | 0.92 | 0.99 | 0.99 | 1.09 | 0.88 | 0.88 | 1.21 | 1.21 | 1.10 | 1.10 | 1.01 | 0.99 |
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 exhibits notable fluctuations over the period under analysis. Starting at 0.99 as of January 31, 2022, the ratio incrementally increased through mid-2022, reaching a peak of 1.21 in October 2022. This indicates that the company's cash and cash equivalents exceeded its current liabilities at these points, suggesting a strong liquidity position during that period.
Subsequently, the ratio declined notably to 0.88 by January 2023, indicating a reduction in immediate liquidity but still remaining relatively strong. Throughout 2023, the cash ratio demonstrated variability, rising again to approximately 1.09 in April 2023 before decreasing slightly to around 0.99 in subsequent quarters, maintaining a generally stable liquidity position.
However, a significant decline is observed in the first quarter of 2024, with the ratio dropping to 0.51, signaling a reduction in cash coverage of current liabilities to roughly half, which may raise concerns about liquidity resilience. The ratio experienced some recovery and fluctuation thereafter, reaching 0.69 in July 2024 and describing a downward trend to 0.36 as of January 2025.
Overall, the company’s cash ratio has exhibited considerable volatility over the examined period. While it has generally hovered around the 1.0 mark, indicative of a comfortable liquidity level when cash and equivalents compare to current liabilities, the recent downward trend suggests increasing liquidity pressures or changes in the company's cash management and liquidity strategy. The substantial decline approaching 2025 warrants closer scrutiny into cash flow, liquidity management, and potential risk factors affecting the company’s ability to promptly meet short-term obligations solely with cash and cash equivalents.
Peer comparison
Apr 30, 2025