ArcBest Corp (ARCB)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	2,429,730	2,414,180	2,408,530	2,357,140	2,485,090	2,437,450	2,414,100	2,431,590	2,494,290	2,440,110	2,293,710	2,209,700	2,112,680	1,962,430	1,841,470	1,768,020	1,779,010	1,746,230	1,870,760	1,834,360
Total stockholders’ equity	US$ in thousands	1,314,360	1,307,100	1,231,540	1,222,730	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
Financial leverage ratio		1.85	1.85	1.96	1.93	2.00	2.00	1.99	2.02	2.17	2.17	2.16	2.25	2.27	2.04	2.05	2.08	2.15	2.18	2.41	2.42

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 been decreasing steadily over the past few years, indicating a decreasing reliance on debt to finance its operations. The ratio was 2.42 as of March 31, 2020, and declined to 1.85 as of December 31, 2024. This decrease suggests that the company has been effectively managing its debt levels and moving towards a more conservative capital structure. A lower financial leverage ratio generally indicates less financial risk and more financial stability for the company. However, it is important to consider the specific industry and economic conditions in which ArcBest operates to fully assess the implications of this trend. Overall, the downward trend in the financial leverage ratio for ArcBest Corp signifies a positive development in its financial risk management.