AdvanSix Inc (ASIX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.06 | 2.02 | 2.03 | 2.18 | 2.84 |
Based on the provided data for AdvanSix Inc, the solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years.
1. Debt-to-assets ratio: AdvanSix Inc has maintained a debt-to-assets ratio of 0.00 throughout the five-year period ending on December 31, 2024. This indicates that the company has financed its assets without relying on debt, which is a positive sign of financial stability.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 for each year between 2020 and 2024. This reflects AdvanSix Inc's ability to fund its operations and investments predominantly through capital rather than debt.
3. Debt-to-equity ratio: The debt-to-equity ratio has consistently been at 0.00 from 2020 to 2024, demonstrating that the company has not taken on any debt relative to its equity during this period. This indicates a conservative approach to leverage and a strong equity position.
4. Financial leverage ratio: The financial leverage ratio, which measures the company's level of debt relative to its equity, decreased from 2.84 in 2020 to 2.06 in 2024. This downward trend signifies that AdvanSix Inc has been reducing its reliance on debt financing over the years, which is generally seen as a positive indicator for solvency.
In conclusion, based on the solvency ratios analyzed, AdvanSix Inc appears to have a robust financial position with low levels of debt and a conservative capital structure, which may enhance its ability to meet its financial obligations and navigate potential economic challenges effectively.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.03 | 10.25 | 82.19 | 37.85 | 8.06 |
AdvanSix Inc's interest coverage ratio has exhibited significant fluctuations over the past five years. The ratio stood at 8.06 for the fiscal year ending December 31, 2020, indicating that the company had sufficient earnings to cover its interest expenses. Subsequently, there was a notable increase in interest coverage to 37.85 for December 31, 2021, reflecting an improvement in the company's ability to service its debt obligations.
The trend continued to strengthen as of December 31, 2022, with the interest coverage ratio soaring to 82.19, signifying a substantial increase in AdvanSix's earnings relative to its interest payments. However, by the end of December 31, 2023, the interest coverage ratio dropped to 10.25, indicating a decrease in the company's ability to cover its interest costs efficiently.
The ratio experienced a further decline to 5.03 for December 31, 2024, pointing to a significant reduction in AdvanSix Inc's ability to service its interest expenses from its operating earnings. Overall, the analysis underscores the variable nature of AdvanSix's interest coverage ratio, highlighting periods of strong and weak performance in meeting its interest obligations over the five-year period.