AdvanSix Inc (ASIX)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	170,000	170,000	140,000	127,000	115,000	135,000	146,500	220,000	135,000	135,000	195,000	246,000	275,000	313,000	388,000	337,000	297,000	266,000	255,000	220,000
Total stockholders’ equity	US$ in thousands	739,237	754,485	774,359	758,067	738,180	714,277	719,209	658,391	601,190	566,311	522,829	474,588	444,123	421,034	420,787	407,836	400,878	417,226	420,563	419,244
Debt-to-capital ratio		0.19	0.18	0.15	0.14	0.13	0.16	0.17	0.25	0.18	0.19	0.27	0.34	0.38	0.43	0.48	0.45	0.43	0.39	0.38	0.34

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 shown fluctuations over the past eight quarters. The ratio has ranged from 0.13 to 0.25 during this period.

In Q1 2022, the debt-to-capital ratio was at its highest point at 0.25, indicating that a significant portion of the company's capital structure was funded by debt. However, in the following quarters, the ratio decreased steadily to 0.13 in Q4 2022, reflecting a reduction in the company's reliance on debt financing.

During Q1 to Q3 2023, the debt-to-capital ratio remained relatively stable between 0.14 and 0.18, suggesting that AdvanSix Inc maintained a balanced mix of debt and equity in its capital structure. In Q4 2023, the ratio increased slightly to 0.19, indicating a slight uptick in the company's debt relative to its total capital.

Overall, the trend in the debt-to-capital ratio for AdvanSix Inc indicates fluctuations but generally shows a moderate level of debt utilization in the firm's capital structure. It is essential for the company to monitor and manage this ratio effectively to ensure optimal capital structure and financial stability.