ArcBest Corp (ARCB)

Financial leverage 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
Total assets	US$ in thousands	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	1,651,210	1,670,630	1,633,930	1,559,660
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
Financial leverage ratio		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	2.16	2.19	2.20	2.16

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,485,090K ÷ $1,242,360K
= 2.00

The financial leverage ratio for ArcBest Corp has been relatively stable in the range of 1.99 to 2.25 over the past eight quarters. The ratio measures the proportion of the company's assets that are financed through debt, indicating the level of financial risk and leverage in the business.

ArcBest Corp's financial leverage ratio of around 2.00 to 2.25 suggests that the company relies moderately on debt to finance its operations and investments. A ratio of 2.00 means that for every $1 of equity, the company has $2 of debt.

The consistency of the financial leverage ratio over the quarters indicates a consistent capital structure maintained by the company. However, the slight fluctuations in the ratio should be monitored to understand any changes in the company's debt levels and associated risks.

Overall, a financial leverage ratio of around 2.00 to 2.25 signals that ArcBest Corp operates with a moderate level of financial leverage, balancing the benefits of debt financing with the risks associated with higher debt levels.