Acuity Brands Inc (AYI)
Financial leverage ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,525,800 | 3,463,900 | 3,408,500 | 3,438,900 | 3,383,800 | 3,436,600 | 3,480,200 | 3,615,500 | 3,679,200 | 3,605,600 | 3,575,100 | 3,560,300 | 3,360,200 | 3,388,600 | 3,491,700 | 3,442,300 | 3,396,700 | 3,305,200 | 3,172,400 | 3,121,100 |
| Total stockholders’ equity | US$ in thousands | 2,149,600 | 2,064,100 | 2,015,400 | 1,969,800 | 1,947,600 | 1,903,500 | 1,911,800 | 1,918,600 | 2,104,300 | 2,072,900 | 2,044,500 | 2,039,100 | 1,932,500 | 1,937,000 | 2,127,500 | 2,095,700 | 2,045,100 | 1,987,300 | 1,918,900 | 1,884,900 |
| Financial leverage ratio | 1.64 | 1.68 | 1.69 | 1.75 | 1.74 | 1.81 | 1.82 | 1.88 | 1.75 | 1.74 | 1.75 | 1.75 | 1.74 | 1.75 | 1.64 | 1.64 | 1.66 | 1.66 | 1.65 | 1.66 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,525,800K ÷ $2,149,600K
= 1.64
The financial leverage ratio of Acuity Brands Inc has shown some fluctuations over the past few periods, ranging from 1.64 to 1.88. A financial leverage ratio above 1 indicates that the company is using debt to finance its operations.
Overall, the company's financial leverage ratio has been relatively stable, with minor variations within a narrow range. This suggests that Acuity Brands Inc has been maintaining a consistent level of debt compared to its equity to fund its operations.
It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's risk profile and financial stability. A higher ratio indicates higher financial risk due to increased reliance on debt financing, while a lower ratio signifies lower risk but may also indicate underutilization of leverage for potential growth opportunities.
Peer comparison
Feb 29, 2024