AdvanSix Inc (ASIX)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 1,594,920 1,510,240 1,477,950 1,467,980 1,542,800 1,476,450 1,467,010 1,448,820 1,495,330 1,455,530 1,483,260 1,457,120 1,312,000 1,290,360 1,245,320 1,242,780 1,263,410 1,235,130 1,286,000 1,263,310
Total stockholders’ equity US$ in thousands 774,650 766,408 746,597 713,157 739,237 754,485 774,359 758,067 738,180 714,277 719,209 658,391 601,190 566,311 522,829 474,588 444,123 421,034 420,787 407,836
Financial leverage ratio 2.06 1.97 1.98 2.06 2.09 1.96 1.89 1.91 2.03 2.04 2.06 2.21 2.18 2.28 2.38 2.62 2.84 2.93 3.06 3.10

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 declining trend over the past few years, indicating an improvement in the company's financial risk profile. As of December 31, 2024, the financial leverage ratio stands at 2.06, which is a decrease from the ratio of 3.10 reported on March 31, 2020. This reduction in the ratio suggests that the company has been reducing its reliance on debt to finance its operations.

The downward trend in the financial leverage ratio signifies that AdvanSix Inc has been effectively managing its debt levels relative to its equity, which can be seen as a positive indicator of the company's financial health. A lower financial leverage ratio usually indicates a lower level of financial risk and greater financial stability, as the company is less dependent on borrowed funds.

It is important for investors and stakeholders to monitor the financial leverage ratio of a company as it provides insights into the extent to which the business is using debt to support its operations and growth. In the case of AdvanSix Inc, the decreasing trend in the financial leverage ratio reflects a prudent approach towards managing its capital structure and financial obligations.