The Andersons Inc (ANDE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 562,960 | 492,518 | 600,487 | 886,453 | 1,016,250 |
| Total assets | US$ in thousands | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 | 3,900,740 |
| Debt-to-assets ratio | 0.15 | 0.11 | 0.13 | 0.21 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $562,960K ÷ $3,855,010K
= 0.15
The debt-to-assets ratio of Andersons Inc. has shown a declining trend over the past five years, decreasing from 0.31 in 2019 to 0.16 in 2023. This indicates that the company has been relying less on debt to finance its assets over the period, which can be seen as a positive trend from a financial health perspective.
A lower debt-to-assets ratio generally suggests that the company has a lower proportion of debt in relation to its total assets, which may indicate lower financial risk and greater stability. Andersons Inc. seems to have improved its financial position by reducing its reliance on debt financing, possibly through a combination of paying down debt, increasing equity financing, or growing its assets through internal cash generation.
It is important to note that a low debt-to-assets ratio does not necessarily mean that a company is better off without any debt. Some level of debt can be beneficial for a company to leverage its operations and achieve growth. Therefore, it is essential for Andersons Inc. to maintain a balance between debt and equity financing, considering its business needs and objectives.
Peer comparison
Dec 31, 2023