The Andersons Inc (ANDE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 | 3,900,740 |
| Total stockholders’ equity | US$ in thousands | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 | 973,610 |
| Financial leverage ratio | 3.00 | 3.84 | 4.26 | 4.44 | 4.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,855,010K ÷ $1,282,900K
= 3.00
Andersons Inc.'s financial leverage ratio has shown a decreasing trend over the past five years. The ratio has decreased from 4.01 in 2019 to 3.00 in 2023. This signifies that the company has been relying less on debt relative to equity in its capital structure. A lower financial leverage ratio indicates a lower level of financial risk, as less debt is used to finance the company's assets. This trend suggests that Andersons Inc. may be moving towards a more conservative capital structure, which could potentially lead to lower interest expenses and improved financial stability. However, it is essential to analyze the trend in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and performance.
Peer comparison
Dec 31, 2023