Advanced Drainage Systems Inc (WMS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 39.83 | 2.33 | 2.40 | 2.52 | 2.63 | 2.63 | 2.70 | 2.79 | 2.97 | 2.74 | 2.65 | 2.74 | 2.43 | 2.54 | 2.73 | 2.45 | 2.30 | 2.31 | 2.52 | 2.83 |
Based on the provided data for Advanced Drainage Systems Inc, the solvency ratios indicate a consistently strong financial position in terms of debt obligations and leverage:
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00, indicating that there is no debt relative to its total assets. This suggests a low financial risk and a strong ability to cover debt obligations using its assets.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has remained at 0.00 consistently. This ratio reflects the proportion of debt in the company's capital structure, with a zero value indicating a debt-free capitalization.
3. Debt-to-equity ratio: The debt-to-equity ratio has also consistently remained at 0.00, implying that the company has no debt relative to its equity. This signifies that the company is not relying on borrowed funds to finance its operations.
4. Financial leverage ratio: The financial leverage ratio has shown some fluctuations over the reporting periods, but overall it has remained relatively stable. The sudden spike in the financial leverage ratio to 39.83 in March 2025 could be due to a change in the capital structure or a significant event impacting debt levels that would require further investigation.
In conclusion, the solvency ratios of Advanced Drainage Systems Inc reflect a strong financial position with minimal debt obligations and a stable capital structure. The company appears to have a robust ability to meet its financial commitments and sustain its operations without being heavily reliant on borrowed funds.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.36 | 7.51 | 7.83 | 7.98 | 8.14 | 8.22 | 8.08 | 8.68 | 10.28 | 11.71 | 14.32 | 15.24 | 12.42 | 11.19 | 10.93 | 10.97 | 10.33 | 8.98 | 6.77 | 3.03 |
Based on the provided data for Advanced Drainage Systems Inc, the interest coverage ratio has shown a positive trend over the past few years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.
Initially, as of June 30, 2020, the interest coverage ratio was 3.03, indicating that the company's operating income was able to cover its interest expenses 3.03 times over.
Over subsequent quarters and years, the interest coverage ratio showed a steady improvement, reaching its peak at June 30, 2022, with a ratio of 15.24. This indicates a significant enhancement in the company's ability to service its interest payments.
However, from that peak, the interest coverage ratio started to decline gradually, although it remained relatively healthy. As of March 31, 2025, the interest coverage ratio stood at 7.36.
Overall, the trend in the interest coverage ratio for Advanced Drainage Systems Inc reflects improving financial health and a strengthened ability to meet its interest obligations. It is important for investors and creditors to monitor this ratio to assess the company's debt repayment capacity and financial stability.