AdvanSix Inc (ASIX)

Debt-to-equity 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-equity ratio		0.23	0.23	0.18	0.17	0.16	0.19	0.20	0.33	0.22	0.24	0.37	0.52	0.62	0.74	0.92	0.83	0.74	0.64	0.61	0.52

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 been relatively stable over the past eight quarters, ranging from 0.16 to 0.23. This ratio indicates the proportion of debt financing in relation to equity financing used by the company.

A decreasing trend in the debt-to-equity ratio from 0.33 in Q1 2022 to 0.17 in Q1 2023 suggests that AdvanSix has been utilizing less debt and relying more on equity financing during this period. This could be a positive sign as lower debt levels may indicate less financial risk and lower interest expenses for the company.

However, the slight increase in the ratio from Q1 2023 to Q4 2023 to 0.23 shows that debt levels have slightly risen relative to equity in the most recent quarter. This increase could be due to various reasons such as strategic investments, acquisitions, or operational needs requiring additional funding.

Overall, the debt-to-equity ratio of AdvanSix Inc has been at manageable levels, signaling a balanced mix of debt and equity in the company's capital structure. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's financial leverage and risk profile.