Autodesk Inc. (NASDAQ:ADSK)

Debt to Equity

From the earliest available data in late 2020, the ratio showed a significant decrease overall through mid-2024. Initially, the debt to equity ratio was high at 24.31 in October 2020 and steadily declined to 0.87 by April 2024. This represents a marked reduction in leverage relative to equity. The trend indicates a consistent strengthening of the equity base or deleveraging efforts by the company. Periodic fluctuations occurred, such as a temporary increase around January 2022, but the overall trajectory is downward.

Debt to Equity Including Operating Lease Liability

The inclusion of operating lease liabilities shows a similar pattern to the standard debt to equity ratio but starts at slightly higher values. The ratio began at 30.95 in October 2020 and decreased to 0.99 by April 2024. The ratio mirrors the decline in the standard debt to equity ratio while exhibiting slightly greater volatility, highlighting the impact of lease liabilities on the company’s capital structure.

Debt to Capital

This ratio shows a decreasing trend over the period from April 2019 through April 2024. Beginning above 1.14 in April 2019, it gradually declined to 0.47 by October 2024. The consistent fall suggests an improvement in the company's capital composition with lower reliance on debt relative to total capital. The decreases indicate improved solvency and possibly lower financial risk.

Debt to Capital Including Operating Lease Liability

Similar in pattern to the debt to capital ratio but generally at slightly higher levels due to lease liabilities. Starting at 1.12 in April 2019, the ratio declined more steadily, reaching 0.50 by October 2024. This downward trend reiterates an overall decrease in leverage and a stronger equity or capital base when factoring in lease obligations.

Debt to Assets

This ratio remained relatively stable with a mild downward trend across the period. It began at 0.41 in April 2019 and dropped to 0.23 in October 2024. The stability and decrease indicate controlled levels of debt relative to total assets, which may reflect conservative asset financing policies or asset growth outpacing debt addition.

Debt to Assets Including Operating Lease Liability

When including operating lease liabilities, the ratio also declined from 0.48 in April 2019 to 0.25 in October 2024. The ratio shows a marginally higher starting point and similar flattening trend, reinforcing that lease liabilities contribute a measurable but manageable portion of total liabilities relative to assets.

Financial Leverage

The financial leverage ratio, reflecting the extent of debt usage, presented very high values in late 2020, exceeding 85, followed by a steep decline to below 4 by October 2024. This dramatic reduction suggests a major deleveraging process or changes in balance sheet structure, significantly reducing the company’s risk exposure and cost of financial obligations over time.

The analysis of the financial data reveals notable changes and trends in indebtedness and equity structure over the observed periods.

Total Debt

The total debt exhibited fluctuations with an initial decline from 1,963 million US dollars in April 2019 to 1,636 million US dollars in July 2020. This was followed by a significant increase to approximately 2,627-2,630 million US dollars between October 2021 and October 2022. Subsequently, total debt decreased again, stabilizing around 2,280-2,290 million US dollars from January 2023 through October 2024.

Stockholders’ Equity

Stockholders’ equity moved from a deficit position of -245 million US dollars in April 2019 to positive territory by July 2020, reaching 67 million US dollars. Thereafter, equity increased substantially, peaking at 1,482 million US dollars in October 2023 and further advancing to 2,616 million US dollars by October 2024, indicating a consistent strengthening in the equity base over the latter periods.

Debt to Equity Ratio

The debt to equity ratio was initially very high, with values exceeding 20 in mid-2020, reflecting high leverage and relatively low or negative equity. Starting from early 2021, as equity grew and debt levels stabilized, the ratio dropped significantly, fluctuating mostly between 1.5 and 3.9 before steadily declining to 0.87 by October 2024. This trend suggests a reduction in financial leverage and an improvement in the equity cushion available to absorb debt obligations over time.

Overall, the data indicates a transition from a highly leveraged position with negative equity to a more balanced and financially stable situation characterized by increased equity and a substantially lower debt-to-equity ratio. This improvement suggests enhanced financial health and potentially greater capacity for future investment and risk management.

The debt to equity ratio, including operating lease liability, exhibits significant fluctuations over the observed period. Initially, the ratio is not calculable due to negative stockholders’ equity from April 2019 through January 2020. A substantial shift occurs in July 2020, with the ratio reaching 30.95, driven by relatively stable debt levels and a move to positive equity. Subsequently, the ratio declines markedly, indicating improving financial leverage.

Initial Period (Apr 30, 2019 – Jan 31, 2020)

During this timeframe, stockholders’ equity is negative, preventing the calculation of a meaningful debt-to-equity ratio. Total debt remains relatively stable, fluctuating between approximately US$2.04 billion and US$2.55 billion.

Transition and Initial Decline (Apr 30, 2020 – Jan 31, 2021)

The period beginning April 2020 witnesses a transition to positive stockholders’ equity. The debt-to-equity ratio initially registers at a high value of 30.95 in July 2020, then decreases to 2.18 by January 2021. This decline is attributable to a rapid increase in stockholders’ equity, from US$67 million to US$966 million, while total debt remains relatively constant.

Stabilization and Subsequent Increase (Feb 1, 2021 – Oct 31, 2021)

From February 2021 through October 2021, the debt-to-equity ratio stabilizes, fluctuating between 1.57 and 2.38. Stockholders’ equity continues to grow, but at a slower pace, while total debt experiences a notable increase to US$3.05 billion.

Recent Trends (Nov 1, 2021 – Jul 31, 2024)

The ratio increases to 3.60 in January 2022, then gradually declines over the subsequent quarters, reaching a low of 0.99 in October 2023. This decrease is primarily driven by growth in stockholders’ equity, which rises from US$849 million to US$1.482 billion. Total debt decreases from US$3.06 billion to US$2.648 billion during this period. The latest available figures, through July 2024, show a continued low ratio, indicating a strengthening equity position relative to debt.

Overall, the trend demonstrates a significant improvement in the company’s solvency position. The initial period of negative equity was followed by a period of rapid equity growth, leading to a substantial reduction in the debt-to-equity ratio. While a temporary increase occurred in early 2022, the ratio has consistently decreased since, suggesting a more conservative capital structure.

Total Debt

The total debt initially decreased from 1,963 million USD in April 2019 to 1,740 million USD in October 2019, indicating an early reduction in debt levels. However, in January 2020, debt spiked to 2,085 million USD before dropping again to around 1,636-1,638 million USD throughout much of 2020. Starting from October 2021, total debt increased sharply to 2,627 million USD and remained close to this level through early 2023. After this peak, debt declined to approximately 2,281-2,286 million USD by the third quarter of 2023 and then stabilized around 2,286 million USD in October 2024.

Total Capital

Total capital followed a fluctuating pattern but with an overall upward trend. The figure started at 1,718 million USD in April 2019 and experienced a dip to a low of 1,497 million USD by April 2020. From this low point, the capital base recovered strongly, peaking at 3,907 million USD in October 2021. Following the peak, total capital showed some volatility but remained elevated, oscillating between approximately 3,300 million USD and 4,900 million USD, with the highest estimate recorded in October 2024 at 4,902 million USD.

Debt to Capital Ratio

The debt to capital ratio exhibited a generally decreasing trend over the period analyzed. Starting above 1.1 in 2019, it steadily declined to below 0.6 by early 2021, suggesting improved capital structure with reduced leverage relative to capital. Notably, the ratio dipped to a minimum of about 0.47 by October 2024, reflecting a consistent decrease in leverage. Despite some temporary increases, the overall pattern indicates a strategic shift toward lower debt levels relative to total capital over the years.

Summary of Trends

The data portrays a company that has managed its debt levels with an initial phase of reduction followed by a notable increase around late 2021, and then a stabilization phase. Concurrently, total capital expanded significantly, more than doubling from its lowest levels in 2020 to late 2024. The leverage ratio, expressed as debt to capital, consistently decreased, signaling an overall strengthening of the capital structure and reduced reliance on debt financing. This dynamic indicates prudent financial management focused on building a stronger equity base and lowering financial risk over time.

The Debt to Capital ratio, including operating lease liability, demonstrates a notable decreasing trend over the observed period, from April 2019 to July 2024. Initially, the ratio fluctuated around 1.10-1.12, indicating that total debt slightly exceeded total capital. However, a consistent decline is evident, particularly from January 2021 onwards, culminating in a ratio of 0.50 in July 2024.

Initial Period (Apr 30, 2019 – Jan 31, 2021)

From April 2019 to January 2021, the Debt to Capital ratio exhibited relative stability, ranging between 1.06 and 1.12. This suggests a consistent, though moderate, level of financial leverage. There were minor fluctuations, but no significant directional change was apparent during this timeframe. Total debt and total capital moved in a similar direction, maintaining a relatively constant ratio.

Significant Decline (Apr 30, 2021 – Oct 31, 2023)

A substantial decrease in the ratio began in April 2021, falling from 0.65 to 0.70, 0.61, 0.70, 0.78, 0.82, 0.80, and 0.77 by October 2022. This period indicates a strengthening of the capital structure relative to debt. The decline suggests either a reduction in debt levels, an increase in capital, or a combination of both. The increase to 0.75 in April 2023 and 0.69 in July 2023 represents a slight pause in the downward trend, but the overall direction remained negative.

Recent Trend (Jan 31, 2023 – Jul 31, 2024)

The downward trend accelerated from January 2023, with the ratio decreasing from 0.70 to 0.50 in July 2024. This represents a significant improvement in the company’s solvency position. The ratio’s movement below 0.60 in late 2023 and continuing into 2024 suggests a considerable reduction in financial risk. The most recent value of 0.50 indicates that capital now significantly exceeds debt, including operating lease liabilities.

Overall, the observed trend suggests a deliberate strategy to reduce financial leverage and strengthen the balance sheet. The consistent decline in the Debt to Capital ratio indicates improved financial health and reduced risk for creditors and investors.

The company's financial data over the observed quarters reveals several notable trends in its debt, assets, and leverage ratios. The total debt exhibits fluctuations with an overall pattern of moderate increase and occasional declines. Starting at approximately $1.96 billion in the second quarter of 2019, debt decreases gradually to a low near $1.64 billion in mid-2020, followed by a significant increase to around $2.63 billion by the last quarter of 2021. Subsequently, total debt declines again to approximately $2.28 billion in early 2023 and then remains relatively stable through mid-2024.

Total assets show a consistent upward trajectory over the period. Beginning at about $4.81 billion in April 2019, assets steadily increase with minor fluctuations, reaching near $8.6 billion by early 2022. After a slight dip, assets continue to rise, peaking at roughly $10.13 billion by the last quarter of 2024. This sustained growth in assets reflects expansion and accumulation of company resources over time.

The ratio of total debt to total assets, representing the company's leverage, decreases significantly from 0.41 in early 2019 to a low around 0.22 by early 2021, indicating reduced financial leverage and potentially lower financial risk at that point. A pronounced increase in this ratio occurs in late 2021, reaching approximately 0.32, corresponding with the peak in total debt. Thereafter, the debt-to-assets ratio declines steadily to about 0.23 by mid-2024, suggesting an improved asset base relative to liabilities and a more conservative leverage posture in the recent periods.

Overall, the data indicate the company has managed its debt prudently relative to asset growth, with periods of increased leverage linked to higher debt levels offset by continuing asset accumulation. The downward trend in the debt-to-assets ratio after the late 2021 peak suggests strengthening balance sheet health and reduced dependency on debt financing over the latest quarters.

The debt to assets ratio, including operating lease liabilities, demonstrates a generally decreasing trend over the observed period, with some fluctuations. Initially, the ratio exhibited a decline from 0.48 in April 2019 to 0.35 in October 2020. A subsequent increase occurred in late 2021, peaking at 0.36 in January 2022, before resuming a downward trajectory. The most recent periods show stabilization around the 0.25-0.26 range.

Initial Decline (Apr 2019 – Oct 2020)

From April 2019 to October 2020, the ratio decreased from 0.48 to 0.35. This indicates a strengthening of the company’s financial position, as a smaller proportion of its assets were financed by debt during this period. The decrease suggests either a reduction in debt levels, an increase in asset base, or a combination of both.

Temporary Increase (Oct 2020 – Jan 2022)

A reversal of the trend occurred between October 2020 and January 2022, with the ratio rising from 0.35 to 0.36. This increase, while modest, suggests a relative increase in debt or a slower growth rate in assets. The increase to 0.36 in January 2022 represents the highest point in the observed period.

Recent Stabilization (Jan 2022 – Apr 2024)

Following the peak in January 2022, the ratio has generally trended downwards, stabilizing in the most recent periods between 0.25 and 0.27. This suggests a renewed focus on maintaining a conservative capital structure. The ratio in April 2024 is 0.26, indicating that approximately 26% of the company’s assets are financed by debt, including operating lease liabilities.

Debt and Asset Movements

The underlying movements in total debt and total assets contribute to the observed ratio trends. While debt remained relatively stable between 2019 and 2022, a significant decrease is observed in early 2023. Total assets experienced more substantial growth, particularly between 2019 and 2021, contributing to the initial decline in the debt to assets ratio. Asset growth slowed in subsequent periods, coinciding with the ratio’s stabilization.

Overall, the company demonstrates a generally conservative approach to debt financing, as evidenced by the declining and stabilizing debt to assets ratio. The fluctuations observed suggest periodic adjustments to the capital structure, but the long-term trend indicates a strengthening financial position.

Total Assets

Total assets demonstrated a general upward trend over the observed period. Beginning at approximately 4.8 billion US dollars in April 2019, assets gradually increased with occasional fluctuations, reaching around 7.3 billion by January 2021. Following this, the asset base expanded further, peaking close to 9.9 billion by January 2024. Despite some minor decreases, such as in early 2022 and mid-2023, the overall direction of total assets was significantly positive, indicating asset growth and potential company expansion.

Stockholders’ Equity

Stockholders’ equity showed an initial negative balance starting at -245 million US dollars in April 2019, but exhibited a consistent improvement over time. This metric moved into positive territory around mid-2020, signifying a pivotal recovery or recapitalization event. From then, equity strengthened steadily, reaching beyond 2.6 billion by October 2024. This strong upward movement suggests effective retention of earnings or capital injections contributing to improved financial health and a solid equity base.

Financial Leverage

Financial leverage, reflecting the ratio of total assets to equity, was exceedingly high in early quarters of 2020, with ratios exceeding 80, likely due to the negative or very low equity base at that time. As equity improved substantially in subsequent periods, leverage ratios declined markedly, stabilizing between approximately 4 and 10 from mid-2020 onward. The downward trend in leverage suggests a reduction in reliance on debt financing or an increase in equity capital, reflecting a stronger and more stable capital structure with lower financial risk.

Overall Analysis

The financial data reveals a significant transformation in capital structure and asset base over the observed timeline. Initial periods were characterized by negative equity and extremely high financial leverage, indicative of financial distress or recapitalization necessities. The subsequent quarters demonstrated a meaningful recovery and growth trajectory in equity, supported by steady asset enlargement. The corresponding decline in financial leverage underscores a shift towards a healthier balance sheet with greater equity backing. These developments collectively indicate improving financial stability and an enhanced capacity to support ongoing operations and growth initiatives.