Archrock Inc (AROC)

Debt-to-equity 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-equity ratio 1.66 1.82 1.80 1.72 1.81

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,198,380K ÷ $1,323,530K
= 1.66

The debt-to-equity ratio of Archrock Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio was reported at 1.81, indicating that the company had higher debt relative to its equity. The ratio decreased to 1.72 by December 31, 2021, suggesting a slight improvement in the company's leverage position.

However, by the end of 2022, the debt-to-equity ratio increased to 1.80, and further to 1.82 by December 31, 2023. These increases indicate a higher reliance on debt financing compared to equity in these years.

Interestingly, by December 31, 2024, the ratio dropped to 1.66, signaling a potential reduction in the company's debt burden relative to its equity.

Overall, the fluctuations in Archrock Inc's debt-to-equity ratio suggest varying levels of leverage and financial risk management over the past five years. Additional analysis and consideration of other financial metrics would be beneficial to understand the company's overall financial health and risk profile accurately.