AdvanSix Inc (ASIX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,594,920 | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 |
| Total stockholders’ equity | US$ in thousands | 774,650 | 739,237 | 738,180 | 601,190 | 444,123 |
| Financial leverage ratio | 2.06 | 2.02 | 2.03 | 2.18 | 2.84 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,594,920K ÷ $774,650K
= 2.06
The financial leverage ratio of AdvanSix Inc has shown a decreasing trend over the past five years. It decreased from 2.84 as of December 31, 2020, to 2.18 as of December 31, 2021, further declining to 2.03 as of December 31, 2022, and maintaining a relatively stable level around 2.02 to 2.06 in the following years.
This declining trend indicates that the company has been reducing its reliance on debt to finance its operations and growth. A lower financial leverage ratio generally suggests a lower risk of financial distress and indicates a stronger financial position. The decreasing trend could be a positive signal to investors and creditors, as it shows that AdvanSix Inc is managing its debt levels effectively and improving its overall financial health over the years.
Peer comparison
Dec 31, 2024