Archrock Inc (AROC)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 2,198,380 1,584,870 1,548,330 1,530,820 1,688,870
Total assets US$ in thousands 3,824,200 2,655,950 2,598,750 2,589,970 2,779,720
Debt-to-assets ratio 0.57 0.60 0.60 0.59 0.61

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,198,380K ÷ $3,824,200K
= 0.57

The debt-to-assets ratio of Archrock Inc has shown a relatively stable trend over the past five years. Starting at 0.61 in December 31, 2020, the ratio decreased to 0.59 in December 31, 2021 before increasing slightly to 0.60 in December 31, 2022 and maintaining that level through December 31, 2023. It then decreased to 0.57 by December 31, 2024.

A debt-to-assets ratio indicates the proportion of a company's assets that are financed through debt. In this case, the decreasing trend in the ratio over the years suggests that Archrock Inc has been able to reduce its reliance on debt funding in relation to its total assets. This improvement may indicate better financial health and reduced financial risk for the company. However, it's essential to consider other financial metrics and market conditions to gain a comprehensive understanding of the company's overall debt management and financial performance.