AdvanSix Inc (ASIX)

Solvency ratios

	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
Debt-to-assets ratio	0.11	0.12	0.10	0.09	0.08	0.09	0.10	0.15	0.10	0.10	0.16	0.20	0.22	0.25	0.30	0.27	0.24	0.22	0.22	0.20
Debt-to-capital ratio	0.19	0.18	0.15	0.14	0.13	0.16	0.17	0.25	0.18	0.19	0.27	0.34	0.38	0.43	0.48	0.45	0.43	0.39	0.38	0.34
Debt-to-equity ratio	0.23	0.23	0.18	0.17	0.16	0.19	0.20	0.33	0.22	0.24	0.37	0.52	0.62	0.74	0.92	0.83	0.74	0.64	0.61	0.52
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

The solvency ratios of AdvanSix Inc provide valuable insights into the company's ability to meet its long-term financial obligations and the extent of its reliance on debt financing.

The debt-to-assets ratio has remained relatively stable over the quarters, ranging from 0.08 to 0.12. This ratio indicates that the company has a low level of debt compared to its total assets, suggesting a strong ability to cover its debt obligations with its asset base.

The debt-to-capital ratio has also shown consistency, hovering around 0.13 to 0.19. This ratio reflects the proportion of the company's capital structure that is financed by debt, with the remaining coming from equity. AdvanSix Inc maintains a moderate level of debt in its capital structure.

The debt-to-equity ratio has displayed a decreasing trend over the quarters, ranging from 0.16 to 0.33. This ratio implies the amount of leverage used by the company in relation to its equity. A declining trend indicates a decrease in the reliance on debt financing, which may indicate improved financial stability.

The financial leverage ratio, reflecting the company's financial risk and extent of leverage, has been relatively stable around the range of 1.89 to 2.21. This ratio suggests the company's ability to use debt to generate earnings and highlights the impact of debt on the company's return on equity.

Overall, based on the solvency ratios of AdvanSix Inc, the company appears to maintain a conservative approach to debt utilization, with a strong asset base and a decreasing reliance on debt financing over the quarters, indicating a stable and healthy financial position.

Coverage ratios

	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
Interest coverage	19.25	36.71	43.49	55.91	70.25	82.27	99.73	89.29	72.23	33.73	23.16	15.27	10.78	4.20	5.93	7.01	9.30	83.88	35.20	22.04

AdvanSix Inc's interest coverage ratio has depicted a gradually decreasing trend from Q1 2022 to Q4 2023. The company's interest coverage ratio was robust and stable in Q1 2022 at 57.94, indicating the firm's ability to comfortably cover its interest expenses.

However, over the subsequent quarters, there was a significant improvement in this ratio, peaking at 81.53 in Q4 2022 before gradually declining. The interest coverage ratio dipped to 9.29 in Q4 2023, which may raise concerns about the company's ability to cover its interest obligations with its operating income.

The decreasing trend in the interest coverage ratio could suggest increased financial risk for AdvanSix Inc, potentially signaling a need for careful monitoring of the company's debt levels and interest payment capabilities in the future.