Acuity Brands Inc (AYI)

The solvency ratios for Acuity Brands, Inc. indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five years, standing at 0.15 in 2023 and 2022, and increasing from 0.11 in 2019 to 0.14 in 2021 before plateauing. This suggests that the company maintains a low level of debt relative to its total assets.

Similarly, the debt-to-capital and debt-to-equity ratios also show a consistent trend, with slight fluctuations over the years. The debt-to-capital ratio has remained around 0.20, while the debt-to-equity ratio has ranged between 0.19 and 0.27, indicating a moderate reliance on debt to finance the company's operations.

The financial leverage ratio, which measures the proportion of a company's assets that are financed with debt, has also shown stability over the years, hovering between 1.64 and 1.82. Overall, these ratios suggest that Acuity Brands, Inc. has effectively managed its debt levels, maintaining a relatively conservative capital structure and a strong solvency position throughout the years.

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Coverage ratios

Acuity Brands, Inc.'s interest coverage has shown a consistent improvement over the past five years, with a notable increase from 13.95 in 2019 to 26.47 in 2023. This indicates the company's enhanced ability to meet its interest obligations from its operating income. A higher interest coverage ratio signifies a greater capacity to handle interest payments, reflecting a reduced risk of default on its debt obligations. The rising trend in Acuity Brands' interest coverage suggests a strengthened financial position and potentially lower financial risk for the company.