The Andersons Inc (ANDE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,121,310 | 3,855,010 | 4,608,000 | 4,569,220 | 4,272,120 |
| Total stockholders’ equity | US$ in thousands | 1,366,190 | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 |
| Financial leverage ratio | 3.02 | 3.00 | 3.84 | 4.26 | 4.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,121,310K ÷ $1,366,190K
= 3.02
The financial leverage ratio of The Andersons Inc has shown a decreasing trend over the past five years, declining from 4.44 in December 2020 to 3.02 in December 2024. This indicates a reduction in the company's reliance on debt financing relative to its equity, which can be seen as a positive sign of financial health and stability. The decrease in the financial leverage ratio suggests that the company may have been paying down debt or increasing its equity base. A lower financial leverage ratio generally indicates lower financial risk and greater financial flexibility, potentially making the company more resilient to economic downturns or unexpected challenges. Overall, the downward trend in The Andersons Inc's financial leverage ratio reflects a prudent approach to managing its capital structure and financial obligations.
Peer comparison
Dec 31, 2024