AeroVironment Inc (AVAV)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,015,860 | 980,299 | 1,006,700 | 826,060 | 824,577 | 921,202 | 891,682 | 896,654 | 914,200 | 905,263 | 925,307 | 908,553 | 928,566 | 588,007 | 577,819 | 584,954 | 534,582 | 508,844 | 486,567 | 480,361 |
| Total stockholders’ equity | US$ in thousands | 822,745 | 812,985 | 793,730 | 574,545 | 550,970 | 621,513 | 607,483 | 599,923 | 607,969 | 602,428 | 599,902 | 598,240 | 612,093 | 523,906 | 519,929 | 509,901 | 481,506 | 462,571 | 444,176 | 437,050 |
| Financial leverage ratio | 1.23 | 1.21 | 1.27 | 1.44 | 1.50 | 1.48 | 1.47 | 1.49 | 1.50 | 1.50 | 1.54 | 1.52 | 1.52 | 1.12 | 1.11 | 1.15 | 1.11 | 1.10 | 1.10 | 1.10 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,015,860K ÷ $822,745K
= 1.23
The financial leverage ratio for AeroVironment Inc has shown a varying trend over the historical period provided. The ratio is calculated by dividing the company's total assets by its total equity, indicating the extent to which the company is using debt to fund its operations.
From the data provided, the financial leverage ratio has fluctuated between 1.10 and 1.54 over the past few years. A higher financial leverage ratio suggests that a company is relying more on debt to finance its assets, which can magnify returns but also increase financial risk. Conversely, a lower ratio indicates a lower reliance on debt financing.
AeroVironment's financial leverage ratio peaked at 1.54 in the most recent periods, indicating a higher level of debt relative to equity. This could be a strategic decision to take advantage of low-interest rates or to fund growth opportunities. However, investors should be cautious as higher leverage can amplify losses in downturns.
On the other hand, the ratio has also seen periods where it was closer to 1.10, suggesting a more conservative capital structure with lower debt levels. This approach may offer more stability and lower financial risk but could potentially limit growth opportunities.
Overall, the trend in AeroVironment's financial leverage ratio indicates fluctuations in the company's capital structure and financing decisions. Investors and analysts should monitor this ratio alongside other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Apr 30, 2024