Archrock Inc (AROC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,323,530 | 871,021 | 860,693 | 891,438 | 935,557 |
Debt-to-capital ratio | 0.62 | 0.65 | 0.64 | 0.63 | 0.64 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,198,380K ÷ ($2,198,380K + $1,323,530K)
= 0.62
Based on the provided data, Archrock Inc's debt-to-capital ratio has shown stability over the years. The ratio has fluctuated within a narrow range, with values ranging from 0.62 to 0.65. This indicates that a significant portion of the company's capital structure is financed by debt, as opposed to equity. The consistency in the ratio suggests that Archrock Inc has been managing its debt and capital structure effectively, maintaining a balance between debt and equity financing. Additionally, the decreasing trend from 0.65 in 2023 to 0.62 in 2024 may indicate that the company is gradually reducing its debt relative to its capital, which can be viewed positively by investors and creditors. Overall, the debt-to-capital ratio analysis suggests that Archrock Inc has a stable and well-managed capital structure over the years.
Peer comparison
Dec 31, 2024