Rollins Inc (ROL)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 395,310 | 490,776 | 39,898 | 136,250 | 185,812 |
| Total assets | US$ in thousands | 2,819,700 | 2,595,460 | 2,122,030 | 2,021,540 | 1,845,900 |
| Debt-to-assets ratio | 0.14 | 0.19 | 0.02 | 0.07 | 0.10 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $395,310K ÷ $2,819,700K
= 0.14
The debt-to-assets ratio of Rollins Inc shows a fluctuating trend over the past five years. As of December 31, 2020, the ratio was 0.10, indicating that 10% of the company's assets were funded by debt. In the following year, the ratio decreased to 0.07, suggesting a more conservative approach to debt financing. By December 31, 2022, the ratio substantially declined to 0.02, reflecting a stronger financial position with minimal debt reliance.
However, there was a notable increase in the debt-to-assets ratio as of December 31, 2023, reaching 0.19. This uptick could signal a higher level of debt relative to assets, potentially indicating increased leverage or borrowing. The ratio remained elevated as of December 31, 2024, at 0.14, underscoring the need for monitoring the company's debt levels and assessing its ability to service obligations.
Overall, the fluctuating nature of Rollins Inc's debt-to-assets ratio over the past five years suggests varying degrees of leverage and financial risk. It is crucial for stakeholders to closely monitor these changes to gauge the company's financial health and risk exposure.
Peer comparison
Dec 31, 2024