Aerovironment Financials
Aerovironment (AVAV) reported $2.0B in revenue for fiscal year 2026, up 140.9% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
A balance-sheet acquisition surge more than doubled revenue, but integration costs and mix compression displaced prior-year profitability.
Revenue more than doubled from FY2025 to FY2026 while gross margin compressed from38.8% to25.3% , indicating that the added scale came with a materially different cost or mix profile rather than simple fixed-cost absorption. The FY2026 balance-sheet expansion appears acquisition-led: goodwill reached$2.5B alongside$1.6B of financing cash inflow, making integration a central operating mechanic.
Cash conversion weakened even as reported earnings had been positive in FY2024 and FY2025. FY2026 free cash flow of
Liquidity is buffered by a current ratio of 4.3x and debt-to-equity of 0.2x, so the enlarged balance sheet is not primarily debt-financed relative to equity. However, cash of
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Aerovironment's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Aerovironment has an operating margin of -15.7%, meaning the company loses $16 on every $100 of revenue. This results in a profitability score of 25/100. This is down from 5.0% the prior year.
Aerovironment's revenue surged 140.9% year-over-year to $2.0B, reflecting rapid business expansion. This strong growth earns a score of 96/100.
Aerovironment carries a low D/E ratio of 0.17, meaning only $0.17 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 76/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 4.30, Aerovironment holds $4.30 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 87/100.
Aerovironment's operations used $78.4M of cash, and capex of $62.5M added to the outflow, for a free cash flow shortfall of $140.9M. This results in a cash flow score of 20/100.
Aerovironment posts a -6.0% return on equity (ROE), meaning it loses $6 for every $100 of shareholders' equity. This results in a returns score of 29/100. This is down from 4.9% the prior year.
Aerovironment scores 4.65, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($9.2B) relative to total liabilities ($1.3B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Aerovironment passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
Aerovironment reported a net loss of $265.1M while operations used $78.4M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Aerovironment reported an operating loss of $311.0M against $24.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Aerovironment generated $2.0B in revenue in fiscal year 2026. This represents an increase of 140.9% from the prior year.
Aerovironment's EBITDA was -$46.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 156.2% from the prior year.
Aerovironment reported -$265.1M in net income in fiscal year 2026. This represents a decrease of 707.8% from the prior year.
Cash & Balance Sheet
Aerovironment recorded an outflow of $140.9M in free cash flow in fiscal year 2026, representing a cash shortfall after capex. This represents a decrease of 575.5% from the prior year.
Aerovironment held $377.3M in cash against $729.0M in long-term debt as of fiscal year 2026.
Not reported for fiscal year 2026.
Margins & Returns
Aerovironment's gross margin was 25.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 13.5 percentage points from the prior year.
Aerovironment's operating margin was -15.7% in fiscal year 2026, reflecting core business profitability. This is down 20.7 percentage points from the prior year.
Aerovironment's net profit margin was -13.4% in fiscal year 2026, showing the share of revenue converted to profit. This is down 18.7 percentage points from the prior year.
Aerovironment's ROE was -6.0% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 10.9 percentage points from the prior year.
Capital Allocation
Aerovironment invested $127.7M in research and development in fiscal year 2026. This represents an increase of 26.8% from the prior year.
Aerovironment invested $62.5M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 220.0% from the prior year.
Not reported for fiscal year 2026.
AVAV Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.0B+140.9% | $820.6M+14.5% | $716.7M+32.6% | $540.5M+21.3% | $445.7M+12.9% | $394.9M+7.5% | $367.3M+16.9% | $314.3M+15.9% | $271.1M+18.4% | $228.9M-2.1% | $233.7M-9.9% | $259.4M+3.1% | $251.7M+4.8% | $240.2M-26.1% | $325.0M |
| Cost of Revenue | $1.5B+194.1% | $502.0M+16.0% | $432.8M+17.9% | $367.0M+20.5% | $304.5M+32.2% | $230.4M+7.5% | $214.2M+15.2% | $185.9M+15.6% | $160.7M+18.0% | $136.2M+6.3% | $128.2M-17.4% | $155.1M-1.9% | $158.1M+7.1% | $147.6M-24.6% | $195.7M |
| Gross Profit | $500.6M+57.1% | $318.6M+12.2% | $283.9M+63.6% | $173.5M+22.9% | $141.2M-14.2% | $164.6M+7.5% | $153.1M+19.2% | $128.4M+19.2% | $107.7M+11.2% | $96.9M-8.2% | $105.6M+1.3% | $104.3M+11.4% | $93.6M+1.2% | $92.5M-28.5% | $129.3M |
| R&D Expenses | $127.7M+26.8% | $100.7M+3.1% | $97.7M+52.0% | $64.3M+17.5% | $54.7M+1.7% | $53.8M+15.7% | $46.5M+35.8% | $34.2M+29.5% | $26.4M-7.1% | $28.5M-18.8% | $35.0M-24.6% | $46.5M+82.2% | $25.5M-31.4% | $37.2M+20.1% | $31.0M |
| SG&A Expenses | $443.3M+179.2% | $158.8M+38.7% | $114.4M-13.3% | $131.9M+36.8% | $96.4M+42.9% | $67.5M+13.4% | $59.5M-1.4% | $60.3M+18.7% | $50.8M+6.7% | $47.6M-5.6% | $50.5M-9.5% | $55.8M+0.2% | $55.7M+8.1% | $51.5M-6.8% | $55.3M |
| Operating Income | -$311.0M-862.3% | $40.8M-43.2% | $71.8M+140.2% | -$178.7M-1707.0% | -$9.9M-122.8% | $43.3M-8.1% | $47.1M+39.3% | $33.8M+11.2% | $30.4M+46.5% | $20.8M+3.5% | $20.1M+896.6% | $2.0M-83.8% | $12.4M+226.6% | $3.8M-91.2% | $43.1M |
| Interest Expense | $24.2M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | -$23.1M-2714.4% | $882K-53.4% | $1.9M+112.9% | -$14.7M-41.4% | -$10.4M-2023.7% | $539K-90.8% | $5.8M+26.0% | $4.6M-52.6% | $9.8M+106.0% | $4.8M+59.5% | $3.0M+397.7% | -$1.0M-185.1% | $1.2M+239.5% | $347K-97.3% | $13.1M |
| Net Income | -$265.1M-707.8% | $43.6M-26.9% | $59.7M+133.9% | -$176.2M-4109.5% | -$4.2M-117.9% | $23.3M-43.2% | $41.1M-13.4% | $47.4M+168.7% | $17.6M+34.9% | $13.1M+45.9% | $9.0M-31.4% | $13.1M-4.7% | $13.7M+31.6% | $10.4M-65.8% | $30.5M |
| EPS (Diluted) | -$5.40 | $1.55-28.9% | $2.18+131.0% | -$7.04-4041.2% | -$0.17-117.7% | $0.96-43.9% | $1.71-13.2% | $1.97+162.7% | $0.75+33.9% | $0.56+43.6% | $0.39 | $0.13 | $0.60+27.7% | $0.47-65.4% | $1.36 |
AVAV Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.7B+410.2% | $1.1B+10.3% | $1.0B+23.2% | $824.6M-9.8% | $914.2M-1.5% | $928.6M+58.7% | $585.0M+15.0% | $508.8M+7.5% | $473.4M+9.5% | $432.5M+5.3% | $410.7M+3.3% | $397.5M+3.3% | $385.0M+6.5% | $361.6M-2.0% | $369.2M |
| Current Assets | $1.9B+211.7% | $606.5M+17.6% | $515.6M+8.1% | $477.0M+29.3% | $368.9M-8.1% | $401.6M-20.3% | $503.9M+7.3% | $469.6M+17.7% | $399.0M+12.7% | $354.1M+2.9% | $344.3M+4.6% | $329.0M+7.2% | $306.9M+16.5% | $263.5M-6.0% | $280.3M |
| Cash & Equivalents | $377.3M+823.4% | $40.9M-44.3% | $73.3M-44.8% | $132.9M+72.0% | $77.2M-48.1% | $148.7M-41.7% | $255.1M+47.7% | $172.7M+20.3% | $143.5M+79.6% | $79.9M-35.7% | $124.3M-13.3% | $143.4M+12.9% | $127.0M+68.5% | $75.3M+17.3% | $64.2M |
| Inventory | $312.9M+117.1% | $144.1M-4.0% | $150.2M+8.2% | $138.8M+53.2% | $90.6M+26.5% | $71.6M+57.3% | $45.5M-15.8% | $54.1M+44.4% | $37.4M-8.5% | $40.9M+9.1% | $37.5M-4.9% | $39.4M-22.3% | $50.7M-19.0% | $62.6M+43.7% | $43.5M |
| Accounts Receivable | $316.2M+210.1% | $102.0M+45.0% | $70.3M-19.8% | $87.6M+45.6% | $60.2M-4.0% | $62.6M-15.0% | $73.7M+137.2% | $31.1M-45.3% | $56.8M-17.3% | $68.7M+22.6% | $56.0M+66.8% | $33.6M+5.9% | $31.7M+60.5% | $19.8M-65.0% | $56.4M |
| Goodwill | $2.5B+871.1% | $256.8M-6.8% | $275.7M+52.5% | $180.8M-45.9% | $334.3M+6.4% | $314.2M+4855.9% | $6.3M | N/A | N/A | $122K | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $1.3B+462.4% | $234.1M+21.2% | $193.1M-29.4% | $273.6M-10.7% | $306.2M-3.2% | $316.5M+321.7% | $75.1M+62.2% | $46.3M-28.1% | $64.4M+27.4% | $50.5M+2.9% | $49.1M+1.2% | $48.6M+14.3% | $42.5M-8.5% | $46.4M-33.6% | $70.0M |
| Current Liabilities | $439.2M+155.1% | $172.2M+18.8% | $144.9M+19.4% | $121.3M+19.7% | $101.4M+5.4% | $96.2M+43.7% | $67.0M+49.2% | $44.9M-27.7% | $62.1M+29.2% | $48.1M+3.7% | $46.3M-0.8% | $46.7M+23.9% | $37.7M-10.6% | $42.2M-33.1% | $63.1M |
| Long-Term Debt | $729.0M+2329.9% | $30.0M+75.5% | $17.1M-86.4% | $125.9M-29.2% | $177.8M-5.2% | $187.5M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $4.4B+396.4% | $886.5M+7.7% | $822.7M+49.3% | $551.0M-9.4% | $608.0M-0.7% | $612.1M+20.0% | $509.9M+10.2% | $462.6M+13.1% | $409.0M+7.1% | $382.0M+5.7% | $361.5M+3.6% | $348.9M+1.9% | $342.5M+8.7% | $315.2M+5.3% | $299.2M |
| Retained Earnings | $9.2M-96.7% | $274.3M+18.9% | $230.7M+34.9% | $171.0M-50.7% | $347.2M-1.2% | $351.4M+7.1% | $328.1M+14.6% | $286.4M+19.9% | $238.9M+8.6% | $219.9M+6.0% | $207.4M+2.7% | $202.0M+1.5% | $199.1M+7.4% | $185.4M+6.0% | $174.9M |
AVAV Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$78.4M-5848.7% | -$1.3M-108.6% | $15.3M+34.1% | $11.4M+218.5% | -$9.6M-111.1% | $86.5M+244.8% | $25.1M-6.9% | $26.9M-61.4% | $69.8M+946.1% | -$8.3M-236.5% | $6.0M-84.7% | $39.4M+15.9% | $34.0M+16.3% | $29.2M+55.9% | $18.8M |
| Capital Expenditures | $62.5M+220.0% | $19.5M-15.0% | $23.0M+54.6% | $14.9M-33.3% | $22.3M+97.9% | $11.3M+0.4% | $11.2M+26.1% | $8.9M-7.0% | $9.6M+6.1% | $9.0M+47.3% | $6.1M+15.9% | $5.3M-26.1% | $7.1M-39.6% | $11.8M-21.1% | $15.0M |
| Free Cash Flow | -$140.9M-575.5% | -$20.9M-171.3% | -$7.7M-121.8% | -$3.5M+89.1% | -$31.9M-142.4% | $75.3M+442.4% | $13.9M-23.1% | $18.1M-70.1% | $60.3M+449.0% | -$17.3M-23237.8% | -$74K-100.2% | $34.1M+27.1% | $26.9M+54.3% | $17.4M+362.8% | $3.8M |
| Investing Cash Flow | -$1.2B-4226.7% | -$28.5M+44.9% | -$51.7M-638.5% | -$7.0M+86.6% | -$52.3M+86.2% | -$378.8M-740.2% | $59.2M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Financing Cash Flow | $1.6B+57774.3% | -$2.9M+87.5% | -$22.9M-145.0% | $50.8M+406.1% | -$16.6M-108.6% | $194.2M+10709.8% | -$1.8M-54.6% | -$1.2M-158.6% | $2.0M-41.8% | $3.5M+212.1% | -$3.1M | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $3.8M | N/A | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
AVAV Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY26 | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.3%-13.5pp | 38.8%-0.8pp | 39.6%+7.5pp | 32.1%+0.4pp | 31.7%-10.0pp | 41.7%0.0pp | 41.7%+0.8pp | 40.9%+1.1pp | 39.7%-2.6pp | 42.3%-2.9pp | 45.2%+5.0pp | 40.2%+3.0pp | 37.2%-1.3pp | 38.5%-1.3pp | 39.8% |
| Operating Margin | -15.7%-20.7pp | 5.0%-5.0pp | 10.0%+43.1pp | -33.1%-30.8pp | -2.2%-13.2pp | 11.0%-1.9pp | 12.8%+2.1pp | 10.8%-0.5pp | 11.2%+2.2pp | 9.1%+0.5pp | 8.6%+7.8pp | 0.8%-4.1pp | 4.9%+3.3pp | 1.6%-11.7pp | 13.3% |
| Net Margin | -13.4%-18.7pp | 5.3%-3.0pp | 8.3%+40.9pp | -32.6%-31.6pp | -0.9%-6.9pp | 5.9%-5.3pp | 11.2%-3.9pp | 15.1%+8.6pp | 6.5%+0.8pp | 5.7%+1.9pp | 3.8%-1.2pp | 5.0%-0.4pp | 5.5%+1.1pp | 4.3%-5.0pp | 9.4% |
| Return on Equity | -6.0%-10.9pp | 4.9%-2.3pp | 7.2%+39.2pp | -32.0%-31.3pp | -0.7%-4.5pp | 3.8%-4.2pp | 8.1%-2.2pp | 10.3%+5.9pp | 4.3%+0.9pp | 3.4%+0.9pp | 2.5%-1.3pp | 3.8%-0.3pp | 4.0%+0.7pp | 3.3%-6.9pp | 10.2% |
| Return on Assets | -4.6%-8.5pp | 3.9%-2.0pp | 5.9%+27.2pp | -21.4%-20.9pp | -0.5%-3.0pp | 2.5%-4.5pp | 7.0%-2.3pp | 9.3%+5.6pp | 3.7%+0.7pp | 3.0%+0.8pp | 2.2%-1.1pp | 3.3%-0.3pp | 3.6%+0.7pp | 2.9%-5.4pp | 8.3% |
| Current Ratio | 4.30+0.8x | 3.520.0x | 3.56-0.4x | 3.93+0.3x | 3.64-0.5x | 4.18-3.4x | 7.53-2.9x | 10.47+4.0x | 6.43-0.9x | 7.37-0.1x | 7.43+0.4x | 7.04-1.1x | 8.13+1.9x | 6.24+1.8x | 4.44 |
| Debt-to-Equity | 0.17+0.1x | 0.030.0x | 0.02-0.2x | 0.23-0.1x | 0.290.0x | 0.31+0.2x | 0.150.0x | 0.10-0.1x | 0.160.0x | 0.130.0x | 0.140.0x | 0.140.0x | 0.120.0x | 0.15-0.1x | 0.23 |
| FCF Margin | -7.1%-4.6pp | -2.5%-1.5pp | -1.1%-0.4pp | -0.6%+6.5pp | -7.2%-26.2pp | 19.1%+15.3pp | 3.8%-2.0pp | 5.7%-16.5pp | 22.2%+29.8pp | -7.5%-7.5pp | 0.0%-13.2pp | 13.2%+2.5pp | 10.7%+3.4pp | 7.2%+6.1pp | 1.2% |
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Where Aerovironment Ranks
Frequently Asked Questions
What is Aerovironment's annual revenue?
Aerovironment (AVAV) reported $2.0B in total revenue for fiscal year 2026. This represents a 140.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Aerovironment's revenue growing?
Aerovironment (AVAV) revenue grew by 140.9% year-over-year, from $820.6M to $2.0B in fiscal year 2026.
Is Aerovironment profitable?
No, Aerovironment (AVAV) reported a net income of -$265.1M in fiscal year 2026, with a net profit margin of -13.4%.
What is Aerovironment's EBITDA?
Aerovironment (AVAV) had EBITDA of -$46.0M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Aerovironment have?
As of fiscal year 2026, Aerovironment (AVAV) had $377.3M in cash and equivalents against $729.0M in long-term debt.
What is Aerovironment's gross margin?
Aerovironment (AVAV) had a gross margin of 25.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Aerovironment's operating margin?
Aerovironment (AVAV) had an operating margin of -15.7% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Aerovironment's net profit margin?
Aerovironment (AVAV) had a net profit margin of -13.4% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Aerovironment's return on equity (ROE)?
Aerovironment (AVAV) has a return on equity of -6.0% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Aerovironment's free cash flow?
Aerovironment (AVAV) recorded an outflow of $140.9M in free cash flow during fiscal year 2026. This represents a -575.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Aerovironment's operating cash flow?
Aerovironment (AVAV) recorded an outflow of $78.4M in operating cash flow during fiscal year 2026, representing cash used by core business activities.
What are Aerovironment's total assets?
Aerovironment (AVAV) had $5.7B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Aerovironment's capital expenditures?
Aerovironment (AVAV) invested $62.5M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Aerovironment spend on research and development?
Aerovironment (AVAV) invested $127.7M in research and development during fiscal year 2026.
What is Aerovironment's current ratio?
Aerovironment (AVAV) had a current ratio of 4.30 as of fiscal year 2026, which is generally considered healthy.
What is Aerovironment's debt-to-equity ratio?
Aerovironment (AVAV) had a debt-to-equity ratio of 0.17 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Aerovironment's return on assets (ROA)?
Aerovironment (AVAV) had a return on assets of -4.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Aerovironment's cash runway?
Based on fiscal year 2026 data, Aerovironment (AVAV) had $377.3M in cash against an annual operating cash burn of $78.4M. This gives an estimated cash runway of approximately 58 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Aerovironment's Altman Z-Score?
Aerovironment (AVAV) has an Altman Z-Score of 4.65, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Aerovironment's Piotroski F-Score?
Aerovironment (AVAV) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Aerovironment's earnings high quality?
Aerovironment (AVAV) reported a net loss of $265.1M while operations used $78.4M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Aerovironment cover its interest payments?
Aerovironment (AVAV) reported an operating loss of $311.0M against $24.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Aerovironment?
Aerovironment (AVAV) scores 56 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.