Archrock Inc (AROC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,323,530	1,290,740	894,496	882,080	871,021	861,093	855,533	853,050	860,693	869,816	873,918	872,323	891,438	904,047	913,821	923,124	935,557	949,685	950,873	999,472
Debt-to-capital ratio		0.62	0.63	0.64	0.64	0.65	0.65	0.66	0.64	0.64	0.63	0.64	0.63	0.63	0.00	0.00	0.00	0.64	0.00	0.00	0.00

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

The debt-to-capital ratio of Archrock Inc has remained relatively stable over the past few years, fluctuating between 0.62 and 0.66. This ratio provides insight into the company's financial leverage by comparing its total debt to its total capital (debt plus equity). A higher ratio indicates higher financial risk, as it implies a larger proportion of debt used to finance the company's operations.

In the most recent period, as of December 31, 2024, the debt-to-capital ratio stood at 0.62, indicating that 62% of the company's capital structure is debt-financed. This suggests that Archrock Inc relies more on equity financing to support its operations compared to debt, which can be seen as a positive sign for investors and creditors as it signifies a lower level of financial risk.

Overall, the debt-to-capital ratio trend of Archrock Inc reflects a cautious approach to debt management, maintaining a balance between debt and equity financing to sustain its business activities and financial health.