AdvanSix Inc (ASIX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,496,020 | 1,495,330 | 1,312,000 | 1,263,410 | 1,235,970 |
| Total stockholders’ equity | US$ in thousands | 739,237 | 738,180 | 601,190 | 444,123 | 400,878 |
| Financial leverage ratio | 2.02 | 2.03 | 2.18 | 2.84 | 3.08 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,496,020K ÷ $739,237K
= 2.02
The financial leverage ratio of AdvanSix Inc has demonstrated a declining trend over the past five years, decreasing from 3.08 in 2019 to 2.02 in 2023. This indicates that the company has been relying less on debt financing and more on equity financing to support its operations and growth. A lower financial leverage ratio generally signifies lower financial risk as the company has less debt relative to its equity. AdvanSix Inc's decreasing trend in financial leverage ratio suggests a potentially healthier financial position and reduced vulnerability to financial distress stemming from high debt levels. However, it is crucial to consider the industry norms and the company's specific circumstances when interpreting this ratio.
Peer comparison
Dec 31, 2023