The Andersons Inc (ANDE)
Debt-to-equity 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-equity ratio | 0.45 | 0.44 | 0.41 | 0.56 | 0.92 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $608,151K ÷ $1,366,190K
= 0.45
The debt-to-equity ratio of The Andersons Inc has shown a declining trend over the past five years. Starting at 0.92 as of December 31, 2020, the ratio decreased to 0.56 by the end of December 31, 2021, and further dropped to 0.41 as of December 31, 2022. However, there was a slight increase to 0.44 by the end of December 31, 2023, and a marginal increase to 0.45 by the end of December 31, 2024.
The decreasing trend in the debt-to-equity ratio indicates that the company has been reducing its reliance on debt to fund its operations in comparison to equity. Generally, a lower debt-to-equity ratio suggests a lower financial risk as the company is less leveraged and has a healthier balance sheet. However, it is essential to consider the industry norms and the company's specific circumstances when assessing the significance of this ratio.
Peer comparison
Dec 31, 2024