ArcBest Corp (ARCB)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	161,990	176,296	168,105	—	198,371	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,242,360	1,220,730	1,211,360	1,205,860	1,151,400	1,126,290	1,063,210	983,172	929,067	961,043	898,134	851,909	828,593	802,639	775,091	759,206	763,043	763,626	743,159	721,755
Debt-to-capital ratio		0.12	0.13	0.12	0.00	0.15	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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)
= $161,990K ÷ ($161,990K + $1,242,360K)
= 0.12

The debt-to-capital ratio of ArcBest Corp has been relatively stable over the past eight quarters, ranging between 0.16 and 0.21. A lower debt-to-capital ratio indicates a lower reliance on debt financing compared to equity, which can be seen as a positive indicator of financial health and stability.

ArcBest Corp's decreasing trend in the debt-to-capital ratio from 0.19 in Q4 2022 to 0.16 in Q4 2023 suggests that the company has been reducing its debt relative to its total capital over the past year. This may indicate that ArcBest Corp is managing its debt levels more effectively or improving its financial performance.

However, the debt-to-capital ratio ticking up to 0.17 in Q3 2023 and again in Q1 2023 could be a sign that the company has taken on more debt or experienced a decrease in total capital during those periods. It is essential to monitor this trend to ensure that ArcBest Corp maintains a healthy balance between debt and equity in its capital structure, to support sustainable growth and minimize financial risk.