ArcBest Corp (ARCB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.07 | 0.07 | 0.07 | 0.00 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.12 | 0.13 | 0.12 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.13 | 0.14 | 0.14 | 0.00 | 0.17 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of ArcBest Corp indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: ArcBest Corp has maintained a relatively low debt-to-assets ratio over the quarters, ranging from 0.09 to 0.12, indicating that only a small portion of its assets is financed by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio shows a consistent trend, staying between 0.16 and 0.21. This ratio indicates the proportion of the company's capital that is financed through debt, and ArcBest Corp has managed to keep this ratio relatively stable.
3. Debt-to-equity ratio: The debt-to-equity ratio has also shown consistency, ranging from 0.18 to 0.26. This ratio reflects the proportion of the company's financing that comes from debt compared to equity, with a lower ratio generally considered more favorable.
4. Financial leverage ratio: ArcBest Corp's financial leverage ratio has been relatively stable between 1.99 and 2.25. This ratio measures the extent to which a company relies on debt to finance its operations, with a higher ratio indicating higher financial risk.
Overall, ArcBest Corp's solvency ratios suggest that the company has maintained a healthy balance between debt and equity financing, with a conservative approach to managing its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 18.98 | 18.31 | 27.70 | 40.49 | 51.85 | 56.15 | 50.41 | 40.61 | 31.56 | 24.15 | 17.52 | 10.97 | 8.40 | 4.71 | 3.99 | 5.46 | 5.56 | 9.74 | 12.36 | 10.20 |
ArcBest Corp's interest coverage ratio has shown significant fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of servicing its interest obligations.
In Q1 2023, ArcBest Corp's interest coverage ratio was exceptionally high at 146.34, indicating a strong ability to cover interest expenses. This was a substantial increase compared to the previous quarters and reflected a robust financial position during that period.
The interest coverage ratio continued to remain strong in Q2 2023 and Q3 2023, with ratios of 51.92 and 26.15 respectively. These figures indicate that the company maintained a healthy ability to cover its interest expenses during these quarters.
However, in Q4 2023, the interest coverage ratio dropped to 18.98, which is still considered satisfactory but represents a significant decrease from the preceding quarters. This decline could be a point of concern as it suggests a decreased ability to cover interest expenses compared to the earlier periods.
It's worth noting that there was no data available for interest coverage in Q4 2022, which limits the ability to provide a complete trend analysis for that period. This gap in information may impact the overall assessment of ArcBest Corp's financial health over time.
In conclusion, while ArcBest Corp has displayed strong interest coverage ratios in recent quarters, the fluctuation in the ratio values, particularly the decrease in Q4 2023, warrants further attention to ensure the company's ability to meet its interest obligations remains stable in the future.