Smith AO Corporation (AOS)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 183,200 | 109,700 | 130,400 | 109,700 | 117,300 | 119,600 | 196,000 | 330,800 | 334,500 | 281,000 | 291,600 | 288,600 | 189,900 | 99,600 | 99,600 | 99,600 | 106,400 | 107,100 | 274,300 | 335,600 |
| Total assets | US$ in thousands | 3,240,000 | 3,154,200 | 3,197,600 | 3,182,200 | 3,213,900 | 3,200,100 | 3,248,800 | 3,336,300 | 3,332,300 | 3,231,900 | 3,321,400 | 3,434,900 | 3,474,400 | 3,300,000 | 3,140,200 | 3,106,800 | 3,160,700 | 2,971,100 | 2,984,200 | 2,983,000 |
| Debt-to-assets ratio | 0.06 | 0.03 | 0.04 | 0.03 | 0.04 | 0.04 | 0.06 | 0.10 | 0.10 | 0.09 | 0.09 | 0.08 | 0.05 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.09 | 0.11 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $183,200K ÷ $3,240,000K
= 0.06
The debt-to-assets ratio of Smith AO Corporation has shown a generally declining trend from March 31, 2020, to December 31, 2024. The ratio decreased from 0.11 on March 31, 2020, to 0.06 on June 30, 2024, before slightly increasing to 0.06 on December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its assets over the period.
However, there was a slight increase observed during the final quarters of 2022 and 2023, reaching a peak of 0.10 on December 31, 2022, and March 31, 2023. This uptick might suggest a temporary increase in the company's debt relative to its assets during those periods.
Overall, the decreasing trend in the debt-to-assets ratio over the years is a positive sign as it indicates that the company is becoming less leveraged and is managing its debt levels effectively. However, monitoring the ratio in relation to industry benchmarks will provide further insight into the company's financial health and risk management practices.
Peer comparison
Dec 31, 2024