Acuity Brands Inc (AYI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.14 | 0.15 | 0.14 | 0.14 | 0.14 | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.11 | 0.11 | 0.12 | 0.11 |
| Debt-to-capital ratio | 0.17 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.15 | 0.16 | 0.16 | 0.15 |
| Debt-to-equity ratio | 0.21 | 0.22 | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.26 | 0.24 | 0.24 | 0.24 | 0.24 | 0.26 | 0.26 | 0.18 | 0.18 | 0.19 | 0.17 |
| 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 |
Acuity Brands Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.
The debt-to-assets ratio has remained relatively stable, ranging from 0.13 to 0.15 over the last few periods. This ratio suggests that Acuity Brands finances a small portion of its assets through debt, with a significant portion being funded by equity.
The debt-to-capital ratio has also shown consistency, fluctuating between 0.17 and 0.21. This ratio reflects the proportion of Acuity Brands' capital structure that is financed by debt, with the rest coming from equity. The trend indicates that the company has maintained a balanced mix of debt and equity financing over time.
The debt-to-equity ratio has increased gradually, reaching 0.26 in the most recent period. This ratio highlights the proportion of Acuity Brands' total debt relative to its equity. A higher ratio suggests higher financial risk due to increased reliance on debt financing.
The financial leverage ratio has fluctuated between 1.60 and 1.88, showing some variability in the company's financial leverage. A higher ratio indicates a greater reliance on debt to fund operations, which can amplify the company's financial risk.
Overall, Acuity Brands Inc's solvency ratios suggest a conservative approach to debt management, with a moderate level of debt relative to assets and capital. The increasing debt-to-equity ratio and financial leverage ratio, however, indicate a slightly higher financial risk that investors and stakeholders should monitor closely.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 22.28 | 20.48 | 20.47 | 19.35 | 17.01 | 17.56 | 17.37 | 17.66 | 19.29 | 19.83 | 18.82 | 17.83 | 17.37 | 17.08 | 15.93 | 15.67 | 13.30 | 12.25 | 12.24 | 11.84 |
Acuity Brands Inc's interest coverage ratio has shown a consistent and strong performance over the past twenty quarters, averaging around 18.35 during this period. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. With a ratio consistently well above 1, the company has demonstrated a strong capability to cover its interest payments from its operating earnings. The increasing trend in the interest coverage ratio from 11.84 in November 2019 to 22.28 in August 2024 reflects the company's improving ability to service its debt obligations. This indicates a favorable financial position and stability in the company's ability to meet its interest expenses.