Advanced Drainage Systems Inc (WMS)

Solvency ratios

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
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
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
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
Financial leverage ratio 2.83 2.93 3.05 3.23 3.52 3.19 3.06 3.26 2.97 3.20 3.61 3.13 2.94 3.03 3.41 4.01 4.51 4.23 4.61 5.37

Over the past few quarters, Advanced Drainage Systems Inc's solvency ratios have shown some fluctuations. The debt-to-assets ratio has ranged from 0.32 to 0.46, indicating that the company has maintained a moderate level of debt in relation to its total assets. The debt-to-capital ratio has varied from 0.49 to 0.67, suggesting that a significant portion of the company's capital structure is funded by debt.

The debt-to-equity ratio has shown wider fluctuations, ranging from 0.95 to 2.09, reflecting higher levels of debt relative to shareholders' equity. This indicates a higher financial risk, as the company has relied more heavily on debt financing compared to equity.

The financial leverage ratio has also shown significant variation, ranging from 2.83 to 5.37. This metric illustrates the extent to which the company is using debt to finance its assets, with higher ratios indicating a higher level of financial leverage.

Overall, Advanced Drainage Systems Inc's solvency ratios reflect a mix of moderate to high levels of leverage and debt utilization, which may carry implications for the company's financial risk and ability to cover debt obligations in the long term. Monitoring these ratios over time can provide insights into the company's evolving financial position and risk profile.

Coverage ratios

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
Interest coverage 358.19 353.59 339.50 449.66 506.91 671.10 1,121.02 878.38 1,078.32 970.75 895.43 914.76 901.90 818.49 712.50 6.17 -2.77 -2.40 -2.80 -20.56

Advanced Drainage Systems Inc's interest coverage ratio has exhibited significant fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

The interest coverage ratio has generally been healthy and well above 1, indicating that the company is generating sufficient operating income to cover its interest payments. However, the ratio experienced a drastic decline in the last three quarters of 2020 and the first quarter of 2021, dipping below 1, which raises concerns about the company's ability to cover its interest expenses with its operating income during those periods.

Subsequently, the interest coverage ratio recovered in the following quarters, showing a strong improvement and reaching extremely high levels in the second and third quarters of 2022. This suggests that the company significantly increased its operating income relative to its interest expenses during those periods, indicating a healthier financial position.

Overall, while the company's interest coverage ratio has fluctuated significantly, it is important for investors and stakeholders to closely monitor these changes to assess the company's financial health and ability to meet its debt obligations.