AeroVironment Inc (AVAV)
Financial leverage ratio
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,120,570 | 1,015,860 | 824,577 | 914,200 | 928,566 |
| Total stockholders’ equity | US$ in thousands | 886,507 | 822,745 | 550,970 | 607,969 | 612,093 |
| Financial leverage ratio | 1.26 | 1.23 | 1.50 | 1.50 | 1.52 |
April 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,120,570K ÷ $886,507K
= 1.26
The financial leverage ratio of AeroVironment Inc exhibits a relatively stable trend over the observed period, with values close to 1.50 from April 30, 2021, through April 30, 2023. Specifically, the ratio was 1.52 in 2021, slightly decreasing to 1.50 in both 2022 and 2023, indicating a consistent level of financial leverage during this time frame.
However, a notable decline occurs in the fiscal year ending April 30, 2024, when the ratio decreases significantly to 1.23. This reduction suggests a decrease in the company's reliance on debt financing relative to its equity, potentially reflecting a strategic effort to reduce leverage or an improvement in equity levels without proportional increases in debt.
Subsequently, the ratio marginally increases to 1.26 in the fiscal year ending April 30, 2025, indicating a slight return toward previous leverage levels but still remaining below the levels observed in the 2021-2023 period.
Overall, the decline in the financial leverage ratio in 2024 may imply a shift toward a more conservative capital structure, possibly aimed at reducing financial risk or strengthening the company's equity base. The slight increase in 2025 suggests a modest rebalancing but does not significantly alter the overall trend of reduced leverage compared to earlier years.
Peer comparison
Apr 30, 2025