AdvanSix Inc (ASIX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
AdvanSix Inc's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have shown consistent stability with low levels of debt relative to its assets and capital over the period analyzed.
The debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, has remained at 0.00 throughout the period. This indicates that AdvanSix Inc has not relied heavily on debt to fund its operations and has maintained a strong financial position in terms of solvency.
Similarly, the debt-to-capital ratio, which indicates the percentage of a company's capital that is financed through debt, has also remained at 0.00 consistently. This implies that AdvanSix Inc has a high proportion of equity in its capital structure, providing a cushion against financial risk.
The debt-to-equity ratio, reflecting the relationship between a company's debt and shareholder equity, has also stayed at 0.00 over the period. This suggests that AdvanSix Inc has minimal debt relative to its equity, reinforcing its financial stability and ability to meet its financial obligations.
Furthermore, the financial leverage ratio, which shows the extent to which a company is using debt to finance its assets, has exhibited a decreasing trend from 3.10 in March 2020 to 2.06 in June 2024. This declining trend indicates that AdvanSix Inc has been reducing its reliance on debt to support its operations, enhancing its solvency and reducing potential financial risks.
Overall, AdvanSix Inc's solvency ratios demonstrate a strong financial position with low debt levels, balanced capital structure, and prudent management of leverage, suggesting a solid foundation for long-term sustainability and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.03 | 5.43 | 1.99 | 1.18 | 10.25 | 21.32 | 32.25 | 54.88 | 82.19 | 73.06 | 75.90 | 57.88 | 37.85 | 31.32 | 19.12 | 11.87 | 7.81 | 4.51 | 6.89 | 8.84 |
AdvanSix Inc's interest coverage ratio has shown significant fluctuations over the given time period. The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt, with a higher ratio suggesting stronger financial health and a lower risk of default.
From March 31, 2020, to June 30, 2022, the interest coverage ratio steadily increased from 8.84 to a peak of 75.90, indicating a positive trend and a strong ability to cover interest payments. This trend suggests that the company's earnings were robust enough to comfortably cover its interest expenses during this period.
However, from September 30, 2022, the interest coverage ratio started to decline, dropping to 10.25 by December 31, 2023. This significant decrease may indicate potential concerns regarding the company's ability to cover interest expenses with its earnings during this period.
Furthermore, from March 31, 2024, to December 31, 2024, the interest coverage ratio remained low, ranging from 1.18 to 5.43. This downward trend suggests a weakening ability to meet interest obligations, which could raise red flags about the company's financial stability and ability to service its debt in the future.
In summary, while AdvanSix Inc experienced a period of strong interest coverage ratios from 2020 to mid-2022, the declining trend in the latter part of the data set raises questions about its ability to manage interest expenses effectively. It would be crucial for stakeholders to closely monitor the company's financial performance and debt management practices to ensure sustainable operations.