Archrock Inc (AROC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,655,950 | 2,672,110 | 2,680,020 | 2,619,910 | 2,598,750 | 2,605,600 | 2,601,330 | 2,600,020 | 2,589,970 | 2,618,220 | 2,695,660 | 2,722,530 | 2,779,720 | 2,865,670 | 2,928,390 | 3,016,840 | 3,109,980 | 3,100,800 | 2,661,310 | 2,634,260 |
| 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 |
| Financial leverage ratio | 3.05 | 3.10 | 3.13 | 3.07 | 3.02 | 3.00 | 2.98 | 2.98 | 2.91 | 2.90 | 2.95 | 2.95 | 2.97 | 3.02 | 3.08 | 3.02 | 2.86 | 2.93 | 3.20 | 3.13 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,655,950K ÷ $871,021K
= 3.05
The financial leverage ratio of Archrock Inc has been relatively stable over the past eight quarters, ranging between 3.00 and 3.13. This ratio indicates that the company relies on debt financing to a significant extent, with the ratio consistently above 3. A financial leverage ratio above 3 indicates that the company's assets are primarily financed by debt rather than equity.
The slight fluctuations in the ratio over the quarters suggest that Archrock Inc has been maintaining a consistent level of leverage, with no significant deviations from its overall debt financing strategy. A higher financial leverage ratio generally means higher financial risk, as the company is more reliant on borrowed funds to support its operations and investments.
It is important for stakeholders to closely monitor this ratio, as any significant changes in the financial leverage ratio could indicate shifts in the company's capital structure or financial health. Overall, the consistent trend in Archrock Inc's financial leverage ratio suggests a stable reliance on debt financing to support its business activities.
Peer comparison
Dec 31, 2023