Arch Resources Inc (ARCH)
Debt-to-equity 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-equity ratio | 0.07 | 0.09 | 0.49 | 1.68 | 0.45 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $105,252K ÷ $1,479,460K
= 0.07
The debt-to-equity ratio of Arch Resources Inc has shown a decreasing trend over the years, indicating a reduction in the company's reliance on debt to finance its operations and investments.
In 2023, the debt-to-equity ratio stands at 0.07, suggesting that the company has a relatively low level of debt compared to its equity. This indicates a strong financial position and lower financial risk.
Compared to the previous year (2022), the debt-to-equity ratio decreased from 0.09 to 0.07, reflecting a further improvement in the company's debt management.
In 2021, the ratio was significantly higher at 0.49, indicating a higher level of debt relative to equity. The sharp decline in the ratio from 2021 to 2022 suggests that the company has actively worked on reducing its debt levels.
The debt-to-equity ratio was notably high in 2020 at 1.68, signifying a substantial amount of debt compared to equity, which could have increased the company's financial risk. However, the company managed to bring down this ratio significantly in the following years.
In 2019, the ratio was 0.45, indicating that the company had a moderate level of debt relative to equity at that time.
Overall, the decreasing trend in the debt-to-equity ratio of Arch Resources Inc highlights the company's efforts in managing its debt levels effectively and improving its overall financial stability.
Peer comparison
Dec 31, 2023