Archrock Inc (AROC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,584,870 | 1,548,330 | 1,530,820 | 1,688,870 | — |
| Total assets | US$ in thousands | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 | 3,109,980 |
| Debt-to-assets ratio | 0.60 | 0.60 | 0.59 | 0.61 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,584,870K ÷ $2,655,950K
= 0.60
The debt-to-assets ratio for Archrock Inc has shown relatively consistent levels over the past five years, ranging from 0.59 to 0.61. This ratio indicates that, on average, approximately 60% of the company's assets are financed through debt.
A consistent debt-to-assets ratio suggests that Archrock Inc has been able to maintain a stable balance between debt and assets over the years. This ratio reflects the company's reliance on debt as a source of financing for its operations and investments in assets.
Overall, the consistent debt-to-assets ratio for Archrock Inc indicates a prudent approach to managing its capital structure and leveraging debt to support its growth and operations. However, it is important to monitor any significant changes in this ratio over time to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023