Archrock Inc (AROC)

Debt-to-equity 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-equity ratio		1.66	1.73	1.80	1.78	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

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 fluctuation over the periods analyzed. As of December 31, 2020, there was a significant increase in the debt-to-equity ratio to 1.81. This indicates that the company had more debt relative to its equity at the end of 2020. Subsequently, the ratio fluctuated between 1.66 and 1.92 until December 31, 2024.

A debt-to-equity ratio above 1 suggests that the company is relying more on debt financing than equity financing to fund its operations and growth. A higher ratio may indicate a higher financial risk, as the company may have a larger debt burden to service.

It is important to note that a high debt-to-equity ratio may not always be negative, as it could also imply efficient use of leverage to generate higher returns for shareholders. However, it is crucial for investors and stakeholders to closely monitor changes in the ratio over time to assess the company's financial health and risk profile.