ArcBest Corp (ARCB)
Debt-to-equity 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-equity ratio | 0.13 | 0.17 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $161,990K ÷ $1,242,360K
= 0.13
The debt-to-equity ratio of ArcBest Corp has shown a decreasing trend over the past five years, indicating an improvement in the company's overall financial leverage. The ratio has decreased from 0.42 in 2019 to 0.18 in 2023. This suggests that ArcBest Corp has been reducing its reliance on debt to finance its operations and is increasingly using equity to fund its activities. A lower debt-to-equity ratio is generally viewed positively by investors and lenders as it signifies lower financial risk and higher solvency. Overall, the decreasing trend in ArcBest Corp's debt-to-equity ratio reflects a strengthening financial position and improved capital structure over the years.
Peer comparison
Dec 31, 2023