Archrock Inc (AROC)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,584,870 | 1,548,330 | 1,530,820 | 1,688,870 | — |
| Total stockholders’ equity | US$ in thousands | 871,021 | 860,693 | 891,438 | 935,557 | 1,085,960 |
| Debt-to-equity ratio | 1.82 | 1.80 | 1.72 | 1.81 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,584,870K ÷ $871,021K
= 1.82
The debt-to-equity ratio of Archrock Inc has shown a fluctuating trend over the past five years. The ratio increased from 1.70 in 2019 to 1.82 in 2023, peaking at 1.81 in 2020. This indicates that the company's reliance on debt to finance its operations has been varying. A ratio above 1 suggests that the company has more debt than equity in its capital structure, which could indicate higher financial risk. However, it's important to note that the absolute values of the ratios are relatively high, indicating that debt levels are significant compared to equity.
Overall, Archrock Inc's debt-to-equity ratio has been above 1 for the past five years, signaling a higher proportion of debt in its capital structure. Investors and stakeholders should closely monitor this ratio to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023