AdvanSix Inc (ASIX)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	170,000	115,000	135,000	275,000	297,000
Total stockholders’ equity	US$ in thousands	739,237	738,180	601,190	444,123	400,878
Debt-to-capital ratio		0.19	0.13	0.18	0.38	0.43

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $170,000K ÷ ($170,000K + $739,237K)
= 0.19

The debt-to-capital ratio for AdvanSix Inc has exhibited fluctuating trends over the past five years. The ratio stood at 0.19 as of December 31, 2023, showing an increase from the previous year but a decline compared to the ratios in 2020 and 2019. This ratio indicates that the company's level of debt relative to its total capital has increased moderately.

In 2022, AdvanSix Inc had a lower debt-to-capital ratio of 0.13, suggesting a more conservative debt position compared to 2023. However, the ratio rose to 0.18 in 2021, indicating a slight increase in the relative debt level from the preceding year.

The year 2020 saw a significant jump in the debt-to-capital ratio to 0.38, signifying a substantial increase in debt compared to total capital. This spike was further emphasized in 2019 with a debt-to-capital ratio of 0.43, highlighting the highest level of debt relative to capital over the five-year period.

Overall, the debt-to-capital ratio trend for AdvanSix Inc reflects varying degrees of leverage and capital structure adjustments over the years. It is essential for stakeholders to monitor these fluctuations to assess the company's financial risk and debt management strategies effectively.