Archrock Inc (AROC)

Debt-to-assets ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	2,198,380	2,236,130	1,608,960	1,566,570	1,584,870	1,604,550	1,639,240	1,547,270	1,548,330	1,498,900	1,532,440	1,517,020	1,530,820	—	—	—	1,688,870	—	—	—
Total assets	US$ in thousands	3,824,200	3,816,250	2,710,650	2,662,940	2,655,950	2,672,110	2,680,020	2,619,910	2,598,750	2,605,600	2,601,330	2,600,020	2,589,970	2,618,220	2,695,660	2,722,530	2,779,720	2,865,670	2,928,390	3,016,840
Debt-to-assets ratio		0.57	0.59	0.59	0.59	0.60	0.60	0.61	0.59	0.60	0.58	0.59	0.58	0.59	0.00	0.00	0.00	0.61	0.00	0.00	0.00

December 31, 2024 calculation

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

Archrock Inc's debt-to-assets ratio has remained relatively low and stable in recent years. The ratio was 0.00 for most of the periods between March 2020 and March 2021, indicating that the company had minimal debt relative to its total assets during this time.

However, the ratio increased to 0.61 by December 2021, indicating a significant increase in debt relative to assets. This may suggest that Archrock took on more debt during this period, possibly for expansion or investment purposes.

After December 2021, the ratio decreased and fluctuated between 0.57 and 0.61 until December 2024, hovering around the 0.60 mark. This slight fluctuation suggests that the company has been managing its debt levels relative to its assets effectively, without experiencing significant changes in leverage.

Overall, Archrock Inc's debt-to-assets ratio indicates a conservative debt management approach with a slight increase in leverage in 2021 followed by a relatively stable debt profile in the subsequent years.