Archrock Inc (AROC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 871,021 | 860,693 | 891,438 | 935,557 | 1,085,960 |
| Debt-to-capital ratio | 0.65 | 0.64 | 0.63 | 0.64 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,584,870K ÷ ($1,584,870K + $871,021K)
= 0.65
The debt-to-capital ratio of Archrock Inc has been relatively stable over the past five years, ranging from 0.63 to 0.65. This indicates that the company's capital structure is primarily funded by debt, representing a significant portion of its total capital. The consistent level of the debt-to-capital ratio suggests that Archrock Inc has maintained a relatively balanced mix of debt and equity financing over the years. It is important to note that a higher debt-to-capital ratio may indicate higher financial risk due to the increased leverage, which can impact the company's ability to meet its financial obligations. On the other hand, a lower ratio may signal a more conservative financial strategy. Overall, further analysis of Archrock Inc's debt levels and financial health is recommended to fully assess the implications of its debt-to-capital ratio.
Peer comparison
Dec 31, 2023