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Acuity Brands Inc (NYSE:AYI)
Debt-to-Equity
0.20 (As of Feb. 2017)

Acuity Brands Inc's current portion of long-term debt for the quarter that ended in Feb. 2017 was $0 Mil. Acuity Brands Inc's long-term debt for the quarter that ended in Feb. 2017 was $356 Mil. Acuity Brands Inc's total equity for the quarter that ended in Feb. 2017 was $1,805 Mil. Acuity Brands Inc's debt to equity for the quarter that ended in Feb. 2017 was 0.20.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Acuity Brands Inc's Debt to Equity Ratio for the fiscal year that ended in Aug. 2016 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(0.2 + 355) / 1659.8
=0.21

Acuity Brands Inc's Debt to Equity Ratio for the quarter that ended in Feb. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(0.3 + 355.8) / 1804.8
=0.20

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Acuity Brands Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
deb2equity 0.540.630.350.510.470.420.360.300.260.21

Acuity Brands Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
deb2equity 0.290.280.270.260.250.240.220.210.210.20
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