Acuity Brands Inc (AYI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,378,800 | 2,015,400 | 1,911,800 | 2,044,500 | 2,127,500 |
| Debt-to-capital ratio | 0.17 | 0.20 | 0.21 | 0.19 | 0.15 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $496,200K ÷ ($496,200K + $2,378,800K)
= 0.17
The debt-to-capital ratio of Acuity Brands Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending August 31, 2024, the ratio improved to 0.17, indicating that the company used less debt relative to its total capital to finance its operations. This suggests a stronger financial position and lower solvency risk compared to the previous year.
Looking back, the ratio was relatively higher in FY 2022 and FY 2023 at 0.21 and 0.20, respectively, reflecting a higher reliance on debt for capital needs during those periods. The decrease in the debt-to-capital ratio in FY 2024 compared to those years signifies a positive shift towards a more balanced capital structure.
Furthermore, the ratio was lower in FY 2020 at 0.15, indicating a lower level of debt usage relative to total capital in that year. The slight increase in the ratio in FY 2021 and subsequent decrease in FY 2024 suggest some fluctuations in the company's capital structure management over the years.
Overall, the recent decrease in Acuity Brands Inc's debt-to-capital ratio points towards a potentially healthier financial position with lower leverage. Nonetheless, it is essential to monitor future trends in the ratio to assess the company's ongoing debt management and its impact on overall financial stability.
Peer comparison
Aug 31, 2024