ArcBest Corp (ARCB)

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	161,990	198,371	—	—	—
Total stockholders’ equity	US$ in thousands	1,242,360	1,151,400	929,067	828,593	763,043
Debt-to-capital ratio		0.12	0.15	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $161,990K ÷ ($161,990K + $1,242,360K)
= 0.12

The debt-to-capital ratio is a financial metric that assesses a company's financial leverage by measuring the proportion of debt relative to its total capital (debt plus equity). A lower debt-to-capital ratio indicates a lower level of financial risk, as it suggests that the company relies less on debt financing and has a higher proportion of equity in its capital structure.

For ArcBest Corp, the trend in the debt-to-capital ratio over the past five years shows a declining pattern. The ratio has decreased from 0.30 in 2019 to 0.16 in 2023. This decline indicates that the company has reduced its reliance on debt financing and has gradually increased its equity position in its capital structure.

A lower debt-to-capital ratio is generally viewed positively by investors and creditors, as it suggests a stronger financial position and lower risk of default. However, it is essential to consider the industry norms and the company's specific circumstances when evaluating the adequacy of its debt levels.

Overall, the declining trend in ArcBest Corp's debt-to-capital ratio over the years indicates a positive shift towards a more balanced and less leveraged capital structure, which may enhance the company's financial stability and resilience.