The Andersons Inc (ANDE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.16 | 0.17 | 0.17 | 0.15 | 0.16 | 0.16 | 0.12 | 0.11 | 0.11 | 0.12 | 0.11 | 0.13 | 0.15 | 0.21 | 0.21 | 0.21 | 0.21 | 0.30 | 0.26 |
| Debt-to-capital ratio | 0.31 | 0.29 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.29 | 0.29 | 0.29 | 0.33 | 0.34 | 0.36 | 0.34 | 0.45 | 0.47 | 0.48 | 0.43 | 0.51 | 0.52 |
| Debt-to-equity ratio | 0.45 | 0.41 | 0.42 | 0.43 | 0.44 | 0.46 | 0.47 | 0.42 | 0.41 | 0.42 | 0.48 | 0.52 | 0.56 | 0.53 | 0.82 | 0.89 | 0.92 | 0.76 | 1.04 | 1.08 |
| 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 |
The solvency ratios of The Andersons Inc, as depicted by the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate the company's ability to meet its financial obligations over the long term.
- The Debt-to-assets ratio has shown a declining trend over the reported periods, starting at 0.26 in March 2020 and decreasing to 0.15 by September 2021 before stabilizing around 0.11 to 0.17 from March 2022 to December 2024. This suggests that the company has maintained a conservative level of debt relative to its total assets.
- The Debt-to-capital ratio also displays a decreasing pattern over the years, starting at 0.52 in March 2020 and reaching 0.29 by September 2024. The declining trend indicates that the company has been successful in reducing its reliance on debt to finance its operations.
- The Debt-to-equity ratio has also seen a downward trajectory from 1.08 in March 2020 to 0.45 by December 2024. The decreasing trend signifies that the company's reliance on equity financing has increased relative to debt financing, indicating a stronger financial position.
- The Financial leverage ratio has notably decreased from 4.11 in March 2020 to 3.02 by December 2024. This reduction indicates that the company has been reducing its financial leverage over time, implying a lower level of risk associated with its capital structure.
Overall, The Andersons Inc's solvency ratios reflect a prudent approach to managing its capital structure, with decreasing debt ratios and enhanced financial strength over the reporting periods.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.61 | 3.98 | 2.97 | 3.72 | 1.49 | -0.03 | 0.21 | 0.32 | 1.59 | 75.82 | 85.24 | 90.94 | 86.25 | 51.50 | 49.61 | 50.31 | 47.26 | -1.76 | -1.81 | 0.32 |
The interest coverage ratio of The Andersons Inc shows fluctuations over the years, reflecting changes in the company's ability to cover its interest expenses with its operating income.
From March 31, 2020, to September 30, 2021, the interest coverage ratios were consistently negative, indicating that the company's operating income was insufficient to cover its interest expenses during that period. However, this trend reversed dramatically starting from December 31, 2021, with the interest coverage ratio increasing substantially and staying well above 1.
The ratios improved significantly from December 31, 2021, onwards, surpassing 50 and reaching a peak of 90.94 on March 31, 2022. This surge suggests a strong ability to meet interest obligations comfortably using operating income during this period.
However, in the subsequent quarters, the interest coverage ratios declined but remained above 1, indicating that the company continued to generate sufficient operating income to cover its interest expenses, although at a reduced level compared to the peak periods.
It is important to note the considerable variability in the interest coverage ratios of The Andersons Inc, highlighting the need for ongoing monitoring of the company's financial performance and debt management practices to ensure sustainable financial health.