Arcosa Inc (ACA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 | 1,790,400 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,332,000K)
= 0.00
The debt-to-capital ratio of Arcosa Inc has shown fluctuations over the past five years, ranging from 0.06 in 2019 to 0.26 in 2021. A lower debt-to-capital ratio indicates a lower level of financial leverage and a higher proportion of capital supplied by equity. Conversely, a higher ratio implies a higher level of debt relative to the total capital structure.
In 2020 and 2021, the debt-to-capital ratio increased to 0.26, indicating a significant portion of the company's capital structure was financed through debt during those years. This could indicate higher financial risk and potential higher interest expenses.
However, the ratio decreased to 0.12 in 2020 and remained stable at 0.20 in 2022 and 2023. This suggests a more balanced capital structure with a reasonable mix of debt and equity financing. It is essential for investors and stakeholders to monitor the trend of the debt-to-capital ratio over time to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023