Arcosa Inc (ACA)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,332,000K
= 0.00
Arcosa Inc's debt-to-equity ratio has fluctuated over the past five years, ranging from 0.06 in 2019 to 0.35 in 2021. A lower debt-to-equity ratio indicates that the company relies more on equity financing rather than debt, which can be a positive sign of financial stability and lower financial risk.
In 2020, the company's debt-to-equity ratio was notably low at 0.13, suggesting a conservative approach to leverage. However, in 2021, the ratio increased to 0.35, indicating a higher level of debt relative to equity, which may raise concerns about the company's financial leverage and ability to meet debt obligations.
The subsequent decrease in the ratio to 0.25 in 2022 and 0.24 in 2023 could imply a strategic effort to reduce debt levels or increase equity financing. Overall, Arcosa Inc's debt-to-equity ratio trend suggests a dynamic balance between debt and equity financing over the years, reflecting the company's evolving financial strategy and risk management practices.
Peer comparison
Dec 31, 2023