AdvanSix Inc (ASIX)
Debt-to-equity 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-equity ratio | 0.23 | 0.16 | 0.22 | 0.62 | 0.74 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $170,000K ÷ $739,237K
= 0.23
The debt-to-equity ratio of AdvanSix Inc has fluctuated over the past five years. In 2019, the ratio was relatively high at 0.74, indicating a higher level of debt compared to equity. However, the company has since reduced its reliance on debt, as seen by the decreasing trend in the ratio to 0.23 in 2023. This suggests that AdvanSix has been effectively managing its debt levels and increasing its equity relative to debt. A lower debt-to-equity ratio indicates a stronger financial position and lower financial risk for the company. Overall, the decreasing trend in the debt-to-equity ratio reflects a positive financial management strategy by AdvanSix Inc over the past five years.
Peer comparison
Dec 31, 2023