The Andersons Inc (ANDE)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 608,151 | 562,960 | 492,518 | 600,487 | 886,453 |
| Total stockholders’ equity | US$ in thousands | 1,366,190 | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 |
| Debt-to-capital ratio | 0.31 | 0.30 | 0.29 | 0.36 | 0.48 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $608,151K ÷ ($608,151K + $1,366,190K)
= 0.31
The debt-to-capital ratio of The Andersons Inc has shown a decreasing trend over the past five years, declining from 0.48 at the end of 2020 to 0.31 at the end of 2024. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio is generally considered favorable as it signifies lower financial risk and greater financial stability. The downward trend suggests that The Andersons Inc has been effectively managing its debt levels and optimizing its capital structure. However, it is important to further investigate the reasons behind this declining trend to assess the sustainability and implications for the company's overall financial health.
Peer comparison
Dec 31, 2024