The Andersons Inc (ANDE)
Debt-to-equity 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-equity ratio | 0.44 | 0.41 | 0.56 | 0.92 | 1.04 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $562,960K ÷ $1,282,900K
= 0.44
The trend in Andersons Inc.'s debt-to-equity ratio over the past five years indicates a decreasing reliance on debt to finance its operations. The ratio has consistently declined from 1.26 in 2019 to 0.49 in 2023. This suggests that the company has been reducing its debt levels relative to its equity, which can indicate improved financial stability and reduced financial risk. The decreasing trend in the debt-to-equity ratio may reflect a combination of factors such as prudent financial management, increased profitability, or effective utilization of equity capital. Overall, the declining trend in this ratio implies that Andersons Inc. has been effectively managing its capital structure over the years and appears to be in a stronger financial position in terms of debt management.
Peer comparison
Dec 31, 2023