Arch Resources Inc (ARCH)
Debt-to-equity 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-equity ratio | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.11 | 0.14 | 0.49 | 1.00 | 1.26 | 1.85 | 1.68 | 1.01 | 0.59 | 0.56 | 0.45 | 0.42 | 0.42 | 0.43 |
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 declining trend over the past five quarters, indicating a decreasing reliance on debt financing compared to equity. The ratio decreased from 0.49 at the end of December 2021 to 0.07 at the end of December 2023. This reduction suggests an improvement in the company's overall financial health and solvency position, as lower debt-to-equity ratios typically signify lower financial risk and greater financial stability.
The significant decrease in the ratio between December 2021 and December 2023 indicates that the company has been actively reducing its debt levels or increasing its equity base, or a combination of both. This may be a strategic decision to strengthen the company's balance sheet and improve its ability to weather economic downturns or unexpected financial challenges.
Overall, the declining trend in the debt-to-equity ratio of Arch Resources Inc is a positive indicator of the company's financial management and efficiency in capital structure optimization.
Peer comparison
Dec 31, 2023