ArcBest Corp (ARCB)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 2,429,730 2,485,090 2,494,290 2,112,680 1,779,010
Total stockholders’ equity US$ in thousands 1,314,360 1,242,360 1,151,400 929,067 828,593
Financial leverage ratio 1.85 2.00 2.17 2.27 2.15

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,429,730K ÷ $1,314,360K
= 1.85

The financial leverage ratio of ArcBest Corp has shown some fluctuations over the past five years. Starting at 2.15 in December 2020, the ratio increased to 2.27 by December 2021 before slightly decreasing to 2.17 by December 2022. In the following years, the ratio continued to decline, reaching 2.00 by December 2023 and further dropping to 1.85 by December 2024.

Overall, the trend indicates a decrease in the financial leverage ratio over the five-year period, suggesting that ArcBest Corp has been relying less on debt to finance its operations and investments. This reduction in leverage could be a positive sign of improved financial health and reduced risk, as lower leverage ratios typically indicate a stronger financial position and better ability to meet financial obligations. However, further analysis of the company's capital structure and debt management strategies would be necessary to fully assess the implications of these changes in the financial leverage ratio.