Rollins Inc (ROL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,330,590 | 1,155,570 | 1,267,200 | 1,111,220 | 964,651 |
| Debt-to-capital ratio | 0.23 | 0.30 | 0.03 | 0.11 | 0.16 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $395,310K ÷ ($395,310K + $1,330,590K)
= 0.23
The debt-to-capital ratio of Rollins Inc has shown fluctuating trends over the years based on the provided data. As of December 31, 2020, the ratio stood at 0.16, indicating that 16% of the company's capital was financed through debt. By December 31, 2021, the ratio had decreased to 0.11, signaling a reduction in the reliance on debt for capital. This downward trend continued into December 31, 2022, where the ratio dropped significantly to 0.03, suggesting a strong capital structure with minimal debt obligations.
However, there was a notable increase in the debt-to-capital ratio by December 31, 2023, where it rose to 0.30. This rise could indicate a higher level of debt relative to the company's capital, potentially signaling greater financial leverage. By December 31, 2024, the ratio slightly decreased to 0.23, but it remained higher compared to the previous years, reflecting a moderate reliance on debt to fund operations.
Overall, the fluctuation in Rollins Inc's debt-to-capital ratio over the years highlights varying levels of financial leverage and capital structure efficiency. It is essential for stakeholders to closely monitor these changes to assess the company's ability to manage debt and maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024