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.
Peer comparison
Dec 31, 2023