ArcBest Corp (ARCB)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 161,990 | 198,371 | — | — | — |
| Total assets | US$ in thousands | 2,485,090 | 2,494,290 | 2,112,680 | 1,779,010 | 1,651,210 |
| Debt-to-assets ratio | 0.07 | 0.08 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $161,990K ÷ $2,485,090K
= 0.07
The debt-to-assets ratio of ArcBest Corp has shown a declining trend over the past five years, indicating a decreasing reliance on debt to finance its assets. As of December 31, 2023, the ratio stands at 0.09, which signifies that only 9% of the company's total assets are financed by debt. This is a positive indicator as lower debt levels suggest lower financial risk and a better ability to withstand economic downturns or interest rate fluctuations.
Comparing this to the ratios for the previous years, we observe a continuous improvement in the company's debt management, with the ratio decreasing from 0.20 in 2019 to 0.09 in 2023. This trend may suggest that ArcBest Corp is effectively managing its debt levels and optimizing its capital structure for long-term sustainability and growth.
In conclusion, the decreasing debt-to-assets ratio of ArcBest Corp reflects a prudent financial strategy that aims to maintain a healthy balance between debt and equity financing, which could enhance the company's overall financial stability and potential for future growth.
Peer comparison
Dec 31, 2023