Rollins Inc (ROL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 490,776 | 39,898 | 136,250 | 185,812 | 279,000 |
| Total stockholders’ equity | US$ in thousands | 1,155,570 | 1,267,200 | 1,111,220 | 964,651 | 833,109 |
| Debt-to-capital ratio | 0.30 | 0.03 | 0.11 | 0.16 | 0.25 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $490,776K ÷ ($490,776K + $1,155,570K)
= 0.30
The debt-to-capital ratio for Rollins, Inc. has fluctuated over the past five years, ranging from 0.04 in 2019 to 0.30 in 2023. A lower ratio indicates less reliance on debt financing relative to total capital, while a higher ratio suggests a higher proportion of debt in the company's capital structure.
In 2019, the company had a low debt-to-capital ratio of 0.26, indicating a conservative approach towards debt financing. However, by 2023, this ratio had increased significantly to 0.30, signaling a higher level of debt relative to the company's capital. This change may suggest that Rollins, Inc. has taken on more debt in recent years to fund its operations or growth initiatives.
It is essential for investors and stakeholders to closely monitor changes in the debt-to-capital ratio, as a significant increase in this ratio could indicate increased financial risk and potential challenges in servicing debt obligations. Conversely, a decreasing ratio may signal a more conservative financial strategy.
Overall, Rollins, Inc.'s debt-to-capital ratio trends indicate shifts in the company's financing strategy over the years, highlighting the importance of assessing the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023