Advanced Drainage Systems Inc (WMS)
Debt-to-equity 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-equity ratio | 1.09 | 1.17 | 1.23 | 1.34 | 1.54 | 1.35 | 1.23 | 1.29 | 1.02 | 1.17 | 1.30 | 0.99 | 0.95 | 1.02 | 1.27 | 1.72 | 2.07 | 1.87 | 2.09 | 1.16 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,259,520K ÷ $1,153,310K
= 1.09
The debt-to-equity ratio of Advanced Drainage Systems Inc has fluctuated over the past few quarters, indicating changes in the company's capital structure and financial leverage. The ratio increased steadily from 1.16 in December 2019 to a peak of 2.07 in March 2020, suggesting a significant increase in debt relative to equity during that period.
Subsequently, the ratio decreased to 0.95 in March 2021 before gradually rising again to 1.54 in March 2023. This indicates that the company relied more on debt financing during this period compared to equity.
However, there was a slight decrease in the ratio to 1.09 in March 2024, which may suggest a shift towards a more balanced capital structure. Overall, the varying debt-to-equity ratios reflect the company's strategic decisions regarding capital allocation and financial risk management. It is important to monitor these trends to assess the company's ability to meet its debt obligations and support future growth initiatives.