Arch Resources Inc (ARCH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 105,252 | 116,288 | 337,623 | 477,215 | 290,066 |
| Total assets | US$ in thousands | 2,484,170 | 2,433,110 | 2,117,160 | 1,722,470 | 1,867,760 |
| Debt-to-assets ratio | 0.04 | 0.05 | 0.16 | 0.28 | 0.16 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $105,252K ÷ $2,484,170K
= 0.04
The debt-to-assets ratio of Arch Resources Inc has exhibited a decreasing trend over the past five years. In particular, the ratio has declined from 0.28 in 2020 to 0.04 in 2023. This suggests that the company has reduced its reliance on debt financing in relation to its total assets. A lower debt-to-assets ratio may indicate a stronger financial position and lower financial risk for the company, as it implies a greater proportion of assets are financed by equity rather than debt. The decreasing trend in the debt-to-assets ratio may be a result of debt repayment, improved profitability, or a combination of both factors. It is important to note that a very low debt-to-assets ratio may also signal underutilization of debt financing opportunities that could potentially enhance returns for shareholders.
Peer comparison
Dec 31, 2023