AeroVironment Inc (AVAV)
Liquidity ratios
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.56 | 4.66 | 4.79 | 4.49 | 3.93 | 3.36 | 3.44 | 3.73 | 3.64 | 4.05 | 3.59 | 4.17 | 4.18 | 9.49 | 10.51 | 7.53 | 10.56 | 10.47 | 10.68 | 10.07 |
| Quick ratio | 2.37 | 2.95 | 2.95 | 2.73 | 2.69 | 2.36 | 2.50 | 2.58 | 2.63 | 2.89 | 2.65 | 2.97 | 3.27 | 8.39 | 6.87 | 6.75 | 9.08 | 9.10 | 9.37 | 8.90 |
| Cash ratio | 0.51 | 1.00 | 0.92 | 0.99 | 1.09 | 0.88 | 1.21 | 1.10 | 1.01 | 0.99 | 1.10 | 1.35 | 1.88 | 6.49 | 6.87 | 4.52 | 6.98 | 7.20 | 7.34 | 7.09 |
AeroVironment Inc's liquidity ratios have shown consistency and strength over the past few quarters. The current ratio has ranged from 3.36 to 4.79, indicating the company's ability to meet its short-term obligations comfortably. The quick ratio, which excludes inventory from current assets, has also been relatively stable, ranging from 2.36 to 3.27. This suggests that the company can cover its short-term liabilities with its most liquid assets.
Furthermore, the cash ratio, which measures the company's immediate ability to pay off its current liabilities with cash and cash equivalents, has been solid, ranging from 0.51 to 1.88. This indicates that AeroVironment has maintained a healthy level of cash reserves to cover its short-term obligations without relying heavily on other current assets.
Overall, AeroVironment Inc's liquidity ratios reflect a strong financial position and the ability to manage its short-term financial commitments effectively. It is important to note that while the ratios indicate strength, it is essential to consider other factors such as future cash flow projections to assess the company's long-term financial health.
Additional liquidity measure
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 203.22 | 171.64 | 198.59 | 190.55 | 185.80 | 206.87 | 176.49 | 173.11 | 184.93 | 191.30 | 180.55 | 191.08 | 163.96 | 147.03 | 45.22 | 177.78 | 178.97 | 153.23 | 156.51 | 146.09 |
The cash conversion cycle of AeroVironment Inc shows fluctuations over the past few periods. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory into cash. A shorter cash conversion cycle is generally seen as more favorable as it indicates that the company is able to collect cash from its sales and cycle it back into the business more quickly.
Looking at the data provided, the cash conversion cycle for AeroVironment Inc varied between 45.22 days to 206.87 days over the analyzed periods. The company experienced a significant increase in the cash conversion cycle from August 1, 2020, to January 29, 2022, with the cycle peaking at 206.87 days in January 2023. This suggests that during this period, AeroVironment Inc was taking longer to convert its investments in inventory into cash, potentially due to challenges in managing working capital and cash flow.
Subsequently, the company managed to reduce the cash conversion cycle to a low of 45.22 days by October 31, 2020, indicating improved efficiency in converting inventory into cash. However, the cycle started to increase again, reaching a peak of 203.22 days by April 30, 2024, indicating a potential reversal or challenges in managing the cash conversion cycle efficiently.
Overall, AeroVironment Inc should focus on optimizing its cash conversion cycle to ensure efficient use of working capital and improve cash flow management. Maintaining a shorter cycle can enhance liquidity, profitability, and overall financial health of the company.