The Andersons Inc (ANDE)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,855,010 | 3,588,100 | 3,570,050 | 4,102,040 | 4,608,000 | 4,418,620 | 4,737,180 | 5,142,940 | 4,569,220 | 3,708,140 | 4,049,090 | 4,266,740 | 4,272,120 | 3,411,610 | 3,303,990 | 3,752,690 | 3,900,740 | 3,284,450 | 3,571,860 | 3,660,250 |
| Total stockholders’ equity | US$ in thousands | 1,282,900 | 1,240,740 | 1,230,990 | 1,169,590 | 1,198,600 | 1,193,920 | 1,167,150 | 1,089,020 | 1,072,420 | 1,033,440 | 1,022,500 | 983,667 | 961,891 | 939,199 | 939,388 | 912,257 | 973,610 | 962,458 | 970,114 | 947,284 |
| Financial leverage ratio | 3.00 | 2.89 | 2.90 | 3.51 | 3.84 | 3.70 | 4.06 | 4.72 | 4.26 | 3.59 | 3.96 | 4.34 | 4.44 | 3.63 | 3.52 | 4.11 | 4.01 | 3.41 | 3.68 | 3.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,855,010K ÷ $1,282,900K
= 3.00
The financial leverage ratio of Andersons Inc. has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 2.89 in Q3 2023 to a high of 4.72 in Q1 2022.
A financial leverage ratio of 3.00 in Q4 2023 indicates that the company is utilizing leverage at a moderate level to fund its operations and growth. This suggests that there is a balance between the use of debt and equity in the company's capital structure.
The decrease in the ratio from 3.84 in Q4 2022 to 3.00 in Q4 2023 may indicate a reduction in the company's reliance on debt to finance its operations. This can be a positive sign as it reflects a potential decrease in financial risk.
It is important for Andersons Inc. to closely monitor its financial leverage ratio to ensure that it remains at a sustainable level and does not pose a threat to the company's financial stability in the long term. Tracking this ratio over time can provide valuable insights into the company's capital structure efficiency and risk management practices.
Peer comparison
Dec 31, 2023