Advanced Drainage Systems Inc (WMS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,153,310	1,078,560	1,029,410	944,672	824,147	940,998	1,038,410	989,996	893,039	799,399	695,219	791,779	819,784	772,205	696,520	602,306	525,723	531,422	498,178	199,126
Debt-to-capital ratio		0.52	0.54	0.55	0.57	0.61	0.57	0.55	0.56	0.50	0.54	0.56	0.50	0.49	0.50	0.56	0.63	0.67	0.65	0.68	0.54

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,259,520K ÷ ($1,259,520K + $1,153,310K)
= 0.52

The debt-to-capital ratio of Advanced Drainage Systems Inc has shown fluctuating trends over the past few quarters. The ratio has ranged from 0.49 to 0.68 since December 2019. The ratio was at its lowest point of 0.49 in March 2021 and the highest point of 0.68 in December 2019.

Overall, the company has maintained a moderate level of debt in relation to its total capital structure, with the ratio hovering between 0.50 and 0.61 for most of the periods. However, there was a slight increase in the ratio in the most recent quarter, reaching 0.52 as of March 31, 2024.

It is important for stakeholders to monitor the trend of the debt-to-capital ratio over time to assess the company's financial leverage and ability to meet its debt obligations.