AeroVironment Inc (AVAV)
Debt-to-capital ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,092 | 125,904 | 177,840 | 187,512 | — |
| Total stockholders’ equity | US$ in thousands | 822,745 | 550,970 | 607,969 | 612,093 | 509,901 |
| Debt-to-capital ratio | 0.02 | 0.19 | 0.23 | 0.23 | 0.00 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,092K ÷ ($17,092K + $822,745K)
= 0.02
The debt-to-capital ratio for AeroVironment Inc has exhibited fluctuations over the past five years. In the most recent fiscal year ending April 30, 2024, the debt-to-capital ratio decreased significantly to 0.02, indicating a lower reliance on debt financing in relation to the total capital structure. This contrasts with the trend observed in the previous year, where the ratio was at 0.19, reflecting a higher proportion of debt in the capital mix.
From April 30, 2020, to April 30, 2022, the debt-to-capital ratio remained relatively stable around 0.23 in both years, suggesting a consistent level of debt relative to total capital during this period. The sudden decrease in the ratio in the latest fiscal year may indicate a strategic shift towards reducing leverage or a fundamental change in the company's capital allocation strategy.
Overall, the downward trend in the debt-to-capital ratio implies a decreasing reliance on debt financing by AeroVironment Inc, which can potentially enhance financial stability and flexibility. However, it is essential to consider the reasons behind this change and assess its impact on the company's growth prospects and overall financial health.
Peer comparison
Apr 30, 2024