Arch Resources Inc (ARCH)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 105,252 | 107,515 | 109,216 | 110,899 | 116,288 | 121,914 | 127,107 | 132,290 | 337,623 | 416,446 | 402,076 | 519,357 | 477,215 | 368,278 | 323,854 | 330,036 | 290,066 | 292,781 | 295,263 | 297,733 |
| Total stockholders’ equity | US$ in thousands | 1,479,460 | 1,396,150 | 1,425,560 | 1,463,990 | 1,365,580 | 1,186,060 | 1,188,710 | 924,252 | 683,866 | 414,643 | 318,529 | 281,443 | 283,561 | 365,646 | 547,782 | 593,764 | 640,536 | 705,436 | 697,950 | 699,947 |
| Debt-to-capital ratio | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.09 | 0.10 | 0.13 | 0.33 | 0.50 | 0.56 | 0.65 | 0.63 | 0.50 | 0.37 | 0.36 | 0.31 | 0.29 | 0.30 | 0.30 |
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 four quarters, falling from 0.13 in March 2022 to 0.07 in December 2023. This indicates that the company has been reducing its reliance on debt in relation to its capital structure.
The high debt-to-capital ratios recorded in the earlier periods, particularly in 2021, could indicate a period of increased leverage or borrowing by the company. However, the subsequent decrease in the ratio suggests that Arch Resources Inc has been taking steps to strengthen its financial position by lowering its debt levels relative to its total capital.
Overall, the improving debt-to-capital ratio is a positive indicator as it signifies a healthier balance between debt and equity in the company's capital structure. It shows that Arch Resources Inc is managing its debt obligations effectively and moving towards a more sustainable financial position.
Peer comparison
Dec 31, 2023