Acuity Brands Inc (AYI)
Financial leverage ratio
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,814,600 | 3,642,900 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,378,800 | 2,254,700 | 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 |
| Financial leverage ratio | 1.60 | 1.62 | 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 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,814,600K ÷ $2,378,800K
= 1.60
The financial leverage ratio of Acuity Brands Inc has fluctuated over the past few years, ranging from 1.60 to 1.88. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company is relying on debt financing for its operations and growth.
A financial leverage ratio of 1.60 to 1.64 suggests that the company's debt levels are relatively moderate compared to its equity, indicating a balanced mix of debt and equity financing. However, the ratio increased to 1.88 at one point, indicating a higher reliance on debt, which may increase the company's financial risk.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio over time, as significant fluctuations may signal changes in the company's financial structure and risk profile. A sustainable and optimal financial leverage ratio would depend on various factors such as industry norms, interest rates, and the overall economic environment.
Peer comparison
Aug 31, 2024