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ASIX (AdvanSix) Financial Strength : 6 (As of Mar. 2025)


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What is AdvanSix Financial Strength?

AdvanSix has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

AdvanSix's Interest Coverage for the quarter that ended in Mar. 2025 was 19.51. AdvanSix's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.24. As of today, AdvanSix's Altman Z-Score is 2.25.


Competitive Comparison of AdvanSix's Financial Strength

For the Chemicals subindustry, AdvanSix's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AdvanSix's Financial Strength Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, AdvanSix's Financial Strength distribution charts can be found below:

* The bar in red indicates where AdvanSix's Financial Strength falls into.


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AdvanSix Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

AdvanSix's Interest Expense for the months ended in Mar. 2025 was $-2 Mil. Its Operating Income for the months ended in Mar. 2025 was $30 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $320 Mil.

AdvanSix's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*30.062/-1.541
=19.51

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

AdvanSix's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(40.093 + 320.437) / 1511.164
=0.24

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

AdvanSix has a Z-score of 2.25, indicating it is in Grey Zones. This implies that AdvanSix is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.25 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AdvanSix  (NYSE:ASIX) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

AdvanSix has the Financial Strength Rank of 6.


AdvanSix Financial Strength Related Terms

Thank you for viewing the detailed overview of AdvanSix's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


AdvanSix Business Description

Traded in Other Exchanges
Address
300 Kimball Drive, Suite 101, Parsippany, NJ, USA, 07054
AdvanSix Inc. is a diversified chemistry company playing a critical role in globally supply chains, innovating and delivering essential products for customers in a wide variety of end markets and applications that touch people's lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. The company key products includes: Nylon, Caprolactam, Plant Nutrients, and Chemical Intermediates The majority of sales is from Plant Nutrients products.
Executives
Achilles B. Kintiroglou officer: SVP, General Counsel 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Erin N Kane director, officer: Chief Executive Officer 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Christopher Gramm officer: Controller 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Michael Marberry director 3050 SPRUCE STREET, ST. LOUIS MO 63103
Farha Aslam director 1770 N PROMOTORY CIRCLE, GREELEY CO 80634
Gena C Lovett director 11324 FOX CREEK FARM WAY, GREAT FALLS VA 22066
Willem L. Blindenbach officer: VP, Integrated Supply Chain 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NJ 07054
Kelly Slieter officer: SVP, Chief HR Officer 300 KIMBALL DRIVE, SUITE 101, PARSIPPANY NY 07054
Todd D. Karran director 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Sharon Spurlin director 333 CLAY ST, SUITE 1600, HOUSTON TX 77002
Patrick Williams director 8310 S. VALLEY HWY, SUITE 350, DENVER CO 80112
Daniel F Sansone director VULCAN MATERIALS COMPANY, 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Michael Preston officer: SVP & Chief Financial Officer 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
Jonathan Bellamy officer: SVP & Chief HR Officer 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054
John M Quitmeyer officer: SVP, Gen Counsel & Corp Secy 300 KIMBALL DRIVE, SUITE 101, C/O LEGAL DEPT., PARSIPPANY NJ 07054