AeroVironment Inc (AVAV)
Debt-to-equity 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-equity ratio | 0.02 | 0.23 | 0.29 | 0.31 | 0.00 |
April 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $17,092K ÷ $822,745K
= 0.02
The debt-to-equity ratio of AeroVironment Inc has shown a significant decreasing trend over the past five years, indicating a shift towards a more conservative capital structure. In April 2020, the company had a debt-to-equity ratio of 0.00, suggesting that AeroVironment had no debt and relied solely on equity financing at that time.
However, the ratio started to increase in the following years, reaching 0.31 in April 2021 and then gradually decreasing to 0.02 by April 2024. This trend suggests that AeroVironment has been actively reducing its debt levels relative to equity, which can be seen as a positive sign of financial stability and a lower risk of financial distress.
Overall, the decreasing trend in the debt-to-equity ratio indicates that AeroVironment has been managing its debt levels effectively and strengthening its financial position over the years.
Peer comparison
Apr 30, 2024