ArcBest Corp (ARCB)
Debt-to-equity 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-equity ratio | 0.10 | 0.13 | 0.17 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $125,156K ÷ $1,314,360K
= 0.10
The debt-to-equity ratio for ArcBest Corp has shown a consistent pattern of stability from December 31, 2020, to December 31, 2021, with a ratio of 0.00 indicating that the company had no debt during these periods.
However, there was a noticeable increase in the debt-to-equity ratio in the following years, reaching 0.17 as of December 31, 2022, suggesting a slight increase in the company's leverage. This increase indicates that ArcBest Corp has started using debt as part of its capital structure.
Subsequently, the debt-to-equity ratio decreased to 0.13 as of December 31, 2023, and further declined to 0.10 as of December 31, 2024. These reductions in the ratio imply that the company has been actively managing its debt levels relative to equity, potentially paying down debt or increasing equity.
Overall, the trend in ArcBest Corp's debt-to-equity ratio indicates a shift towards a more balanced capital structure over the years, highlighting the company's cautious approach to managing its financial obligations and maintaining a healthy balance between debt and equity.
Peer comparison
Dec 31, 2024