AeroVironment Inc (AVAV)
Financial leverage ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,015,860 | 824,577 | 914,200 | 928,566 | 584,954 |
| Total stockholders’ equity | US$ in thousands | 822,745 | 550,970 | 607,969 | 612,093 | 509,901 |
| Financial leverage ratio | 1.23 | 1.50 | 1.50 | 1.52 | 1.15 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,015,860K ÷ $822,745K
= 1.23
The financial leverage ratio of AeroVironment Inc has been fluctuating over the past five years. In April 2020, the ratio was relatively low at 1.15, indicating a lower level of financial leverage. However, the ratio increased in the following years, with peaks at 1.52 in April 2021 and April 2022, suggesting higher financial leverage during those periods.
In the most recent period as of April 2024, the financial leverage ratio decreased to 1.23, indicating a slight reduction in financial leverage compared to the previous years. This ratio suggests that AeroVironment Inc relies on a mix of debt and equity to finance its operations and investments, with a higher ratio indicating a higher level of debt relative to equity.
The fluctuation in the financial leverage ratio over the years may indicate changes in the company's capital structure and its ability to generate returns on investments. Investors and creditors may monitor this ratio to assess the company's risk levels and financial stability, as higher leverage can increase both potential returns and risks.
Peer comparison
Apr 30, 2024