Rollins Inc (ROL)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 490,776 | 596,642 | 337,509 | 62,432 | 39,898 | 109,878 | 219,858 | 280,783 | 136,250 | 49,250 | 69,250 | 96,250 | 185,812 | 154,375 | 242,500 | 307,300 | 279,000 | 313,500 | 335,375 | — |
| Total stockholders’ equity | US$ in thousands | 1,155,570 | 1,102,840 | 1,342,220 | 1,287,750 | 1,267,200 | 1,229,680 | 1,177,380 | 1,138,020 | 1,111,220 | 1,101,630 | 1,050,680 | 988,935 | 964,651 | 932,716 | 862,830 | 800,371 | 833,109 | 806,897 | 752,264 | 719,124 |
| Debt-to-capital ratio | 0.30 | 0.35 | 0.20 | 0.05 | 0.03 | 0.08 | 0.16 | 0.20 | 0.11 | 0.04 | 0.06 | 0.09 | 0.16 | 0.14 | 0.22 | 0.28 | 0.25 | 0.28 | 0.31 | 0.00 |
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
Rollins, Inc.'s debt-to-capital ratio has fluctuated over the past eight quarters, ranging from 0.04 to 0.35. The ratio measures the proportion of the company's capital structure financed by debt. A lower ratio indicates a lesser reliance on debt for funding operations, while a higher ratio suggests a higher level of debt relative to equity.
In Q1 2023 and Q4 2022, the company maintained relatively low debt-to-capital ratios of 0.05 and 0.04, respectively, indicating a conservative capital structure with a larger portion funded by equity. This could signal stronger financial stability and a lower risk of default for Rollins, Inc.
On the other hand, Q3 2023 recorded the highest debt-to-capital ratio at 0.35, signifying a significant increase in debt compared to previous quarters. This might indicate that Rollins, Inc. has taken on more debt to finance its operations or growth initiatives during this period.
The quarterly trend in the debt-to-capital ratio for Rollins, Inc. showcases variability in the company's capital structure over time. Analyzing the underlying reasons for these fluctuations, such as changes in debt levels or capital allocation strategies, could provide valuable insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023