AdvanSix Inc (ASIX)

Financial leverage 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
Total assets	US$ in thousands	1,496,020	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	1,235,970	1,211,820	1,162,890	1,123,770
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
Financial leverage ratio		2.02	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	3.08	2.90	2.77	2.68

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 fluctuated over the quarters analyzed. The ratio ranges from a low of 1.89 in Q2 2023 to a high of 2.21 in Q1 2022. A financial leverage ratio above 1 indicates that the company relies on debt financing, with a higher ratio suggesting a higher level of debt relative to equity.

The trend indicates that AdvanSix Inc's financial leverage was highest in Q1 2022, with a ratio of 2.21, and has since decreased to 1.89 in Q2 2023. This decrease may suggest a reduction in the company's overall debt levels relative to its equity. However, the ratio increased again to 2.02 in Q4 2023, showing a reversal of this trend.

The fluctuations in the financial leverage ratio can have implications for the company's financial risk and stability. Investors and creditors may closely monitor these changes to assess the company's ability to manage its debt obligations and withstand financial challenges.