Archrock Inc (AROC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,824,200 | 2,655,950 | 2,598,750 | 2,589,970 | 2,779,720 |
| Total stockholders’ equity | US$ in thousands | 1,323,530 | 871,021 | 860,693 | 891,438 | 935,557 |
| Financial leverage ratio | 2.89 | 3.05 | 3.02 | 2.91 | 2.97 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,824,200K ÷ $1,323,530K
= 2.89
The financial leverage ratio of Archrock Inc has shown fluctuations over the past five years. As of December 31, 2020, the ratio was 2.97, indicating the company had $2.97 of debt for every $1 of equity. This ratio decreased slightly to 2.91 by December 31, 2021, before increasing to 3.02 by December 31, 2022, and further to 3.05 by December 31, 2023.
However, by December 31, 2024, the financial leverage ratio decreased to 2.89, implying that the company had slightly lower financial leverage with $2.89 of debt for every $1 of equity. This fluctuation in the financial leverage ratio suggests varying levels of debt relative to equity in the company's capital structure over the years. It is essential for stakeholders to closely monitor these changes as they can impact the financial risk and stability of Archrock Inc.
Peer comparison
Dec 31, 2024