Archrock Inc (AROC)

Solvency ratios

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
Debt-to-assets ratio 0.57 0.59 0.59 0.59 0.60 0.60 0.61 0.59 0.60 0.58 0.59 0.58 0.59 0.00 0.00 0.00 0.61 0.00 0.00 0.00
Debt-to-capital ratio 0.62 0.63 0.64 0.64 0.65 0.65 0.66 0.64 0.64 0.63 0.64 0.63 0.63 0.00 0.00 0.00 0.64 0.00 0.00 0.00
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
Financial leverage ratio 2.89 2.96 3.03 3.02 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

The solvency ratios for Archrock Inc indicate its ability to meet its long-term financial obligations.

1. Debt-to-assets ratio:
- The debt-to-assets ratio shows the proportion of the company's assets financed by debt. This ratio increased from 0.00 in March 2020 to 0.57 in December 2024. Although there was a slight fluctuation, overall, the company's debt relative to its total assets remained relatively stable and at a moderate level.

2. Debt-to-capital ratio:
- The debt-to-capital ratio reveals the extent of a company's capital structure that is financed through debt. This ratio varied between 0.63 and 0.66 during the period. It indicates that a significant portion of Archrock Inc's capital comes from debt financing, with a slight increase observed towards the end of the period.

3. Debt-to-equity ratio:
- The debt-to-equity ratio reflects the company's leverage and financial risk. Archrock Inc's debt-to-equity ratio fluctuated between 1.66 and 1.92 from March 2020 to June 2024. The company's reliance on debt financing is evident, although it showed some variation over the years.

4. Financial leverage ratio:
- The financial leverage ratio demonstrates the proportion of the company's assets that are financed through debt. Archrock Inc's financial leverage ratio ranged from 2.89 to 3.13 during the period, reflecting the company's increasing reliance on debt financing over time.

Overall, the solvency ratios for Archrock Inc indicate a moderate level of debt relative to assets, capital, and equity. However, the increasing trend in these ratios over the years suggests a growing reliance on debt financing, which may warrant careful monitoring of the company's financial risk in the future.

Coverage ratios

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
Interest coverage 46.82 7.24 4.18 2.54 2.28 2.02 1.83 1.79 1.60 1.53 1.46 1.30 1.36 1.37 1.47 1.02 0.19 0.22 0.21 0.67

The interest coverage ratio for Archrock Inc shows a declining trend from March 2020 to December 2021, indicating a potential lack of earnings to cover interest expenses during that period. However, starting from March 2022, the interest coverage ratio improves significantly and consistently over the next few quarters, reaching a peak of 46.82 in December 2024. This suggests that the company's ability to cover its interest payments has strengthened substantially in recent periods, reflecting improved financial health and a better ability to service its debt obligations. Overall, the increasing trend in interest coverage ratio indicates a positive development in Archrock Inc's financial performance and liquidity position.