Advanced Drainage Systems Inc (WMS)
Debt-to-capital ratio
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 92,652 | 1,546,280 | 1,474,690 | 1,366,880 | 1,261,900 | 1,200,250 | 1,162,760 | 1,093,070 | 977,367 | 1,098,130 | 1,198,340 | 1,178,820 | 1,088,420 | 1,005,140 | 916,737 | 1,011,370 | 1,049,700 | 1,013,740 | 942,613 | 852,230 |
| 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 |
March 31, 2025 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $92,652K)
= 0.00
The debt-to-capital ratio for Advanced Drainage Systems Inc has consistently been 0.00 from June 30, 2020, to March 31, 2025. This indicates that the company has not utilized debt significantly in its capital structure during this period. A debt-to-capital ratio of 0.00 implies that the company's total debt is minimal or non-existent in relation to its total capital, which includes both debt and equity.
Having a low or zero debt-to-capital ratio can signify financial stability and a lower risk of default, as the company is not highly leveraged. It suggests that the company has been financing its operations and investments primarily through equity or retained earnings rather than taking on debt.
While a low debt-to-capital ratio may indicate conservative financial management, it may also imply missed opportunities for leveraging debt to potentially increase returns on equity. It is essential to consider the company's overall financial strategy and objectives when evaluating its debt-to-capital ratio in isolation.