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 | ||
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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.
Peer comparison
Dec 31, 2024