ArcBest Corp (ARCB)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 125,156 | 161,990 | 198,371 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,314,360 | 1,242,360 | 1,151,400 | 929,067 | 828,593 |
| Debt-to-capital ratio | 0.09 | 0.12 | 0.15 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $125,156K ÷ ($125,156K + $1,314,360K)
= 0.09
The debt-to-capital ratio of ArcBest Corp provides insight into the company's leverage and financial risk. As of December 31, 2020, and December 31, 2021, the ratio was 0.00, indicating that the company had no debt relative to its capital during these periods.
However, there was a noticeable increase in the ratio, reaching 0.15 as of December 31, 2022. This suggests that ArcBest Corp started using debt as a financing source, representing 15% of its capital structure. By December 31, 2023, the ratio slightly decreased to 0.12, indicating a slight improvement in the company's debt position.
Furthermore, as of December 31, 2024, the debt-to-capital ratio decreased further to 0.09, signaling that ArcBest Corp has been successful in managing its debt levels relative to its capital base. Overall, the trend indicates a strategic approach to balancing debt and equity within the company's capital structure over the analyzed period.
Peer comparison
Dec 31, 2024