Archrock Inc (AROC)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 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 | 1,085,960 | 1,057,020 | 832,890 | 842,292 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 | 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 eight quarters, ranging between 0.63 and 0.66. This ratio indicates that, on average, the company's debt accounts for approximately 64% to 66% of its total capital structure, with the remaining percentage representing equity.
A consistent debt-to-capital ratio suggests that Archrock Inc has maintained a balanced capital structure over the quarters analyzed, with a significant portion of its capital being financed through debt. This could imply that the company has been effectively utilizing debt as a source of funding to support its operations and growth initiatives.
Overall, the stability of the debt-to-capital ratio over time indicates a consistent approach to capital management by Archrock Inc, providing investors and stakeholders with insights into the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023