Advanced Drainage Systems Inc (WMS)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,259,520 | 1,261,740 | 1,264,200 | 1,266,800 | 1,269,390 | 1,272,040 | 1,275,210 | 1,279,180 | 908,705 | 931,765 | 901,511 | 780,565 | 782,220 | 783,874 | 885,528 | 1,037,470 | 1,089,370 | 991,267 | 1,043,150 | 230,337 |
| Total assets | US$ in thousands | 3,268,910 | 3,161,960 | 3,137,970 | 3,048,670 | 2,901,120 | 3,005,660 | 3,177,600 | 3,225,360 | 2,649,760 | 2,555,760 | 2,506,620 | 2,474,620 | 2,413,830 | 2,342,440 | 2,373,370 | 2,415,030 | 2,369,890 | 2,249,180 | 2,295,320 | 1,068,420 |
| Debt-to-assets ratio | 0.39 | 0.40 | 0.40 | 0.42 | 0.44 | 0.42 | 0.40 | 0.40 | 0.34 | 0.36 | 0.36 | 0.32 | 0.32 | 0.33 | 0.37 | 0.43 | 0.46 | 0.44 | 0.45 | 0.22 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,259,520K ÷ $3,268,910K
= 0.39
The debt-to-assets ratio for Advanced Drainage Systems Inc has exhibited some fluctuations over the past several quarters, ranging from a low of 0.22 to a high of 0.46. Overall, the company's debt-to-assets ratio has trended within a relatively narrow range, indicating a consistent level of leverage in its capital structure.
In recent quarters, the debt-to-assets ratio has shown a slight downward trend, decreasing from 0.46 in March 2020 to 0.39 in March 2024. This suggests that the company may have been reducing its reliance on debt financing in relation to its total assets.
While the company's current ratio of 0.39 as of March 31, 2024, indicates that approximately 39% of its assets are funded by debt, it is essential to consider industry norms and sector-specific benchmarks to fully evaluate the company's leverage position. Additionally, further analysis of the company's cash flow, interest coverage, and overall financial health would provide a more comprehensive understanding of its debt management practices and financial stability.