Arch Resources Inc (ARCH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,479,460 | 1,365,580 | 683,866 | 283,561 | 640,536 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.33 | 0.63 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $105,252K ÷ ($105,252K + $1,479,460K)
= 0.07
The debt-to-capital ratio of Arch Resources Inc has shown a declining trend over the past five years. In 2019, the ratio stood at 0.31, indicating that the company's debt represented 31% of its capital structure. However, this ratio decreased significantly in 2021 to 0.33, indicating a higher proportion of debt relative to capital. In 2022, the ratio decreased to 0.08, reflecting a substantial reduction in the company's debt relative to its total capital. By the end of 2023, the ratio further decreased to 0.07, suggesting that the company's reliance on debt as a source of capital has declined significantly.
Overall, the decreasing trend in the debt-to-capital ratio indicates that Arch Resources Inc has been effectively managing its debt levels relative to its capital structure in recent years. A lower ratio generally indicates a stronger financial position and lower financial risk for the company.
Peer comparison
Dec 31, 2023