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.