Rollins Inc (ROL)
Debt-to-equity 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-equity ratio | 0.30 | 0.42 | 0.03 | 0.12 | 0.19 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $395,310K ÷ $1,330,590K
= 0.30
Rollins Inc's debt-to-equity ratio has exhibited fluctuating trends over the past five years. As of December 31, 2020, the ratio stood at 0.19, indicating that the company had a moderate level of debt relative to its equity. However, by the end of 2021, the ratio had decreased significantly to 0.12, suggesting a lower reliance on debt financing compared to the previous year.
In 2022, Rollins Inc's debt-to-equity ratio hit its lowest point at 0.03, signaling a notable reduction in the proportion of debt in its capital structure. This indicates a conservative approach towards debt management and a stronger financial position.
However, in 2023, there was a substantial increase in the ratio to 0.42, reflecting a higher level of debt in relation to equity. This could signify a change in the company's financing strategy or an increase in leverage.
By the end of 2024, the ratio decreased to 0.30, though still higher than the levels seen in 2021 and 2022. This suggests that Rollins Inc may be actively managing its debt levels to achieve a more balanced capital structure.
Overall, the fluctuating nature of Rollins Inc's debt-to-equity ratio indicates varying degrees of leverage over the years. It is crucial for investors and stakeholders to monitor these trends to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024