The Andersons Inc (ANDE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 | 973,610 |
| Debt-to-capital ratio | 0.30 | 0.29 | 0.36 | 0.48 | 0.51 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $562,960K ÷ ($562,960K + $1,282,900K)
= 0.30
The debt-to-capital ratio for Andersons Inc. has shown a decreasing trend over the past five years, indicating a stronger financial position in terms of leverage. The ratio has declined from 0.56 in 2019 to 0.33 in 2023. This suggests that the company has been reducing its reliance on debt to finance its operations and investments, while increasing its capital base.
A decreasing debt-to-capital ratio is generally viewed positively by investors and creditors, as it signifies lower financial risk and potentially greater stability. Andersons Inc. appears to have improved its debt management and capital structure over the years, which may enhance its creditworthiness and overall financial health.
It is important for the company to continue monitoring and managing its debt levels to maintain a sustainable capital structure and support future growth and profitability. Overall, the decreasing trend in Andersons Inc.'s debt-to-capital ratio reflects a positive development in its financial leverage position.
Peer comparison
Dec 31, 2023