AeroVironment Inc (AVAV)
Current ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 515,581 | 477,002 | 368,909 | 401,638 | 503,927 |
| Total current liabilities | US$ in thousands | 144,879 | 121,334 | 101,391 | 96,185 | 66,953 |
| Current ratio | 3.56 | 3.93 | 3.64 | 4.18 | 7.53 |
April 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $515,581K ÷ $144,879K
= 3.56
The current ratio of AeroVironment Inc has exhibited a fluctuating trend over the past five years. In the most recent fiscal year ended April 30, 2024, the current ratio stood at 3.56, reflecting a decrease from the previous year's ratio of 3.93. Despite this decline, the current ratio remains at a relatively healthy level, indicating that the company's current assets are sufficient to cover its current liabilities.
Comparing the current ratio to prior years, we observe that the ratio was highest in the fiscal year ended April 30, 2020, at 7.53, before experiencing a consistent downward trend in the subsequent years. The declining trend could suggest changes in the company's liquidity position or management of current assets and liabilities.
A current ratio above 1 indicates that AeroVironment Inc has more current assets than current liabilities, which is a positive sign for short-term financial health and liquidity. However, the downward trend in the current ratio over the past few years may warrant further investigation into the company's working capital management and liquidity position to ensure sustained financial stability.
Peer comparison
Apr 30, 2024