Archrock Inc (AROC)
Debt-to-equity 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-equity ratio | 1.82 | 1.86 | 1.92 | 1.81 | 1.80 | 1.72 | 1.75 | 1.74 | 1.72 | 0.00 | 0.00 | 0.00 | 1.81 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 some fluctuations over the past eight quarters. The ratio ranged from a high of 1.92 in Q2 2023 to a low of 1.72 in Q3 2022. Generally, the trend indicates that the company has been increasing its reliance on debt to finance its operations compared to equity.
A debt-to-equity ratio above 1 suggests that Archrock Inc has more debt than equity in its capital structure. This indicates that the company may have a higher risk due to its significant debt obligations. Investors and creditors may closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
The increasing trend in the debt-to-equity ratio may indicate that Archrock Inc has been taking on more debt to fund its operations, acquisitions, or investments. While debt can provide financial leverage and enable growth, it also increases financial risk, especially if the company faces challenges in generating sufficient cash flow to service its debt.
Overall, the analysis of Archrock Inc's debt-to-equity ratio suggests a persistent inclination towards debt financing, which could warrant further scrutiny to evaluate the company's long-term financial stability and growth prospects.
Peer comparison
Dec 31, 2023