Rollins Inc (ROL)
Debt-to-equity 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-equity ratio | 0.42 | 0.03 | 0.12 | 0.19 | 0.33 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $490,776K ÷ $1,155,570K
= 0.42
The debt-to-equity ratio of Rollins, Inc. has shown fluctuations over the past five years. In 2023, the ratio increased to 0.42 from 0.04 in 2022, indicating a significant rise in the company's reliance on debt financing relative to equity. This substantial increase might suggest higher financial leverage and potential risks associated with servicing debt obligations.
Comparing 2023 to 2021 and 2020, the current ratio remains higher, which implies a more pronounced debt presence compared to equity in recent years. However, the ratio is still lower than in 2019, indicating that the company has managed to reduce its debt-to-equity ratio over the long term.
Overall, the trend in Rollins, Inc.'s debt-to-equity ratio shows variability, with 2023 reflecting a notable spike. Further analysis of the company's financial health and performance metrics would be necessary to understand the impact of this change on its overall financial position and strategic decision-making.
Peer comparison
Dec 31, 2023