Acuity Brands Inc (AYI)
Debt-to-assets ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 496,200 | 495,600 | 495,000 | 494,300 | 376,800 |
| Total assets | US$ in thousands | 3,814,600 | 3,408,500 | 3,480,200 | 3,575,100 | 3,491,700 |
| Debt-to-assets ratio | 0.13 | 0.15 | 0.14 | 0.14 | 0.11 |
August 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $496,200K ÷ $3,814,600K
= 0.13
The debt-to-assets ratio for Acuity Brands Inc has displayed some fluctuations over the past five years, ranging from 0.11 to 0.15. The ratio indicates the proportion of the company's assets financed by debt, with a lower ratio typically suggesting lower financial risk.
In this case, the ratio has generally remained at relatively low levels, with a low of 0.11 in 2020 and a high of 0.15 in 2023. This indicates that Acuity Brands Inc has been conservative in using debt to finance its operations, relying more on equity and potentially indicating a strong financial position.
The decrease from 0.15 in 2023 to 0.13 in 2024 suggests a slight improvement in the company's debt management efficiency. Overall, the trend of the debt-to-assets ratio for Acuity Brands Inc indicates a prudent approach to debt utilization, which may contribute to financial stability and resilience in the long term.
Peer comparison
Aug 31, 2024