Acuity Brands Inc (AYI)
Debt-to-equity ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 495,600 | 495,000 | 494,300 | 376,800 | 347,500 |
| Total stockholders’ equity | US$ in thousands | 2,015,400 | 1,911,800 | 2,044,500 | 2,127,500 | 1,918,900 |
| Debt-to-equity ratio | 0.25 | 0.26 | 0.24 | 0.18 | 0.18 |
August 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $495,600K ÷ $2,015,400K
= 0.25
The debt-to-equity ratio of Acuity Brands, Inc. has shown fluctuating trends over the past five years. In 2023, the ratio stands at 0.25, indicating that for every dollar of equity, the company has 25 cents in debt. This represents a slight decrease from the previous year's 0.27.
The trend from 2020 to 2022 saw an increase in the debt-to-equity ratio, reaching a peak of 0.27 in 2022 before declining slightly in 2023. This suggests that the company may have taken on more debt relative to its equity during this period, potentially to support growth initiatives or ongoing operations.
However, when compared to the 2019 and 2020 levels where the ratio was at 0.19, the increase in the debt-to-equity ratio might raise concerns about the company's increasing reliance on debt financing. It is important to note that these ratios should be viewed in the context of the company's overall financial strategy, industry benchmarks, and economic conditions.
Peer comparison
Aug 31, 2023