The Andersons Inc (ANDE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,121,310 | 3,388,300 | 3,299,810 | 3,261,070 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,366,190 | 1,329,170 | 1,310,600 | 1,279,990 | 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 |
| Financial leverage ratio | 3.02 | 2.55 | 2.52 | 2.55 | 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 |
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 fluctuated over the past few years. Starting from 4.11 as of March 31, 2020, the ratio decreased to 3.52 by June 30, 2020, indicating a reduction in the company's reliance on debt to finance its operations. However, the ratio increased to 4.44 by the end of December 31, 2020, signifying a higher level of debt in the company's capital structure.
The trend continued with fluctuations in subsequent periods, reaching a peak of 4.72 as of March 31, 2022, before declining to 2.52 as of June 30, 2024. This significant reduction in the financial leverage ratio suggests that the company may be gradually reducing its debt levels or increasing its equity base to strengthen its financial position.
Overall, the decreasing trend in the financial leverage ratio of The Andersons Inc indicates a potential reduction in financial risk, as lower leverage ratios typically signify a lower risk of bankruptcy and insolvency. However, it is essential to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and stability.
Peer comparison
Dec 31, 2024