The Andersons Inc (ANDE)

Solvency ratios

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
Debt-to-assets ratio 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 0.26 0.29 0.28 0.27
Debt-to-capital ratio 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 0.51 0.50 0.51 0.51
Debt-to-equity ratio 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 1.04 1.01 1.04 1.04
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

Andersons Inc. solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend over the quarters, suggesting a lower proportion of assets financed by debt. The ratio stood at 0.16 in Q4 2023, indicating that only 16% of the company's assets are financed by debt.

Similarly, the debt-to-capital and debt-to-equity ratios also reflect a declining trend, indicating a decreased reliance on debt financing in relation to total capital and equity. The debt-to-capital ratio decreased from 0.66 in Q1 2022 to 0.33 in Q4 2023, while the debt-to-equity ratio decreased from 1.91 to 0.49 during the same period.

The financial leverage ratio, which measures the company's total debt relative to its equity, shows a decreasing trend as well. The ratio decreased from 4.72 in Q1 2022 to 3.00 in Q4 2023, indicating a reduction in financial risk and leverage.

Overall, the solvency ratios of Andersons Inc. have shown improvement over the quarters, with a declining trend in debt ratios and leverage ratios. This suggests that the company is effectively managing its debt levels and enhancing its financial stability.

Coverage ratios

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
Interest coverage 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 27.92 26.37 6.25 2.08

Andersons Inc.'s interest coverage has shown fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt from its operating income. A higher interest coverage ratio indicates better financial health and a lower risk of default.

In Q4 2023, Andersons Inc. reported an interest coverage ratio of 7.44, reflecting a significant improvement from the previous quarter. This indicates that the company's operating income was sufficient to cover its interest expenses 7.44 times over. This is a positive sign for the company's financial stability and indicates a strong ability to meet its interest obligations.

In the previous quarters, the interest coverage ratios ranged between 3.60 and 5.63, showing some variability in the company's ability to cover its interest expenses. Despite some fluctuations, the ratios generally remained above 3.0, which is considered the threshold for adequate interest coverage.

Overall, Andersons Inc. has shown a generally improving trend in its interest coverage over the past eight quarters, indicating a strengthening financial position and a reduced risk of default on its debt obligations. Investors and creditors may view this positively as it suggests that the company is effectively managing its debt and generating sufficient income to cover its interest payments.