ArcBest Corp (ARCB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.05 | 0.05 | 0.06 | 0.06 | 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 |
| Debt-to-capital ratio | 0.09 | 0.08 | 0.11 | 0.11 | 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 |
| Debt-to-equity ratio | 0.10 | 0.09 | 0.12 | 0.12 | 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 |
| 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 |
ArcBest Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: The trend of this ratio shows a significant increase from 0% in the earlier periods to 5% by December 31, 2024. This suggests that ArcBest Corp's proportion of debt in relation to its total assets has been gradually increasing but remains at a relatively low level.
2. Debt-to-capital ratio: This ratio also experienced an upward trend over the period, reaching 9% by December 31, 2024, indicating that a higher proportion of the company's capital structure is financed by debt. However, this ratio is still at a moderate level.
3. Debt-to-equity ratio: Similarly, the debt-to-equity ratio has been on the rise, reaching 10% by December 31, 2024. This ratio shows the extent to which ArcBest Corp relies on debt financing compared to equity, with the recent increase indicating a slightly higher reliance on debt.
4. Financial leverage ratio: The financial leverage ratio declined steadily over the period, indicating a reduction in ArcBest Corp's reliance on debt to fund its operations. The ratio decreased from 2.42 in March 31, 2020, to 1.85 by December 31, 2024, suggesting a positive trend in managing the company's debt levels and financial risk.
Overall, ArcBest Corp's solvency ratios demonstrate a conservative approach to managing debt and financial leverage, with a gradual increase in the debt portion of the capital structure. The company seems to maintain a balanced mix of debt and equity financing to support its operations and investments, while also showing improvements in managing its leverage over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 27.22 | 30.35 | 20.37 | 19.33 | 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 |
The interest coverage ratio of ArcBest Corp has shown fluctuations but generally improving trends over the provided periods from March 31, 2020, to December 31, 2024.
1. The interest coverage ratio started at 5.46 as of March 31, 2020, indicating that the company generated 5.46 times more operating income than it needed to cover its interest expenses.
2. The ratio decreased to 3.99 as of June 30, 2020, suggesting a tighter ability to cover interest payments.
3. From September 30, 2020, to September 30, 2022, there was a steady increase in the interest coverage ratio, reaching a peak of 56.15 as of September 30, 2022. This significant improvement indicates a strong capability of the company to cover its interest obligations.
4. The ratio declined from the peak in September 2022 to 18.98 as of December 31, 2023, possibly signaling a deterioration in the company's ability to cover interest expenses efficiently.
5. From March 31, 2024, to December 31, 2024, the interest coverage ratio remained relatively stable around 20, indicating the company's ongoing ability to comfortably meet its interest payment obligations.
Overall, it is essential for stakeholders to closely monitor the interest coverage ratio to assess ArcBest Corp's financial health and its ability to meet interest payments, especially considering the fluctuations observed in the ratio over the analyzed periods.