Acuity Brands Inc (AYI)
Debt-to-equity 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-equity ratio | 0.21 | 0.25 | 0.26 | 0.24 | 0.18 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $496,200K ÷ $2,378,800K
= 0.21
The debt-to-equity ratio of Acuity Brands Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to shareholder equity. As of August 31, 2024, the company's debt-to-equity ratio stood at 0.21, which is lower than the ratios reported in the previous four years. This trend suggests that Acuity Brands has been effectively managing its debt levels and maintaining a conservative capital structure.
A lower debt-to-equity ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and a stronger financial position. It indicates that the company has a greater proportion of equity financing in relation to debt, which can enhance its ability to weather economic downturns and volatile market conditions.
Overall, the decreasing trend in Acuity Brands' debt-to-equity ratio reflects a prudent financial strategy focused on maintaining a healthy balance between debt and equity to support sustainable growth and financial stability.
Peer comparison
Aug 31, 2024