Adtalem Global Education Inc (ATGE)

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Adtalem Global Education Inc over the past five years, we can see trends in its financial health.

The debt-to-assets ratio measures the proportion of a company's assets that are funded by debt. Adtalem's debt-to-assets ratio has been decreasing over the years, suggesting that the company is relying less on debt to finance its operations and investments.

The debt-to-capital ratio compares a company's total debt to its total capital (debt + equity). Adtalem's debt-to-capital ratio has remained relatively stable over the years, indicating a consistent balance between debt and equity in its capital structure.

The debt-to-equity ratio reflects the amount of leverage a company is using to finance its assets relative to shareholders' equity. Adtalem's debt-to-equity ratio has also been declining steadily, showing a reduction in financial risk and a stronger equity position.

The financial leverage ratio measures the extent to which a company uses debt to finance its operations. Adtalem's financial leverage ratio has fluctuated but generally remained at moderate levels, indicating a reasonable level of debt in relation to its equity.

Overall, the solvency ratios of Adtalem Global Education Inc demonstrate a positive trend towards lower debt reliance and improved financial stability over the analyzed period, which may enhance the company's ability to weather economic downturns and capitalize on growth opportunities in the future.

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Coverage ratios

Based on the data provided for Adtalem Global Education Inc's interest coverage ratio over the past five years, there has been a fluctuating trend.

In June 2024, the interest coverage ratio improved to 3.56, indicating that the company's operating income was sufficient to cover its interest expenses 3.56 times. This demonstrates a stronger ability to meet interest obligations compared to the previous year.

In June 2023, the interest coverage ratio was 2.64, which showed a slight decrease from the previous year. Although the company's operating income was still able to cover its interest expenses, the coverage was slightly lower.

The interest coverage ratio increased to 3.28 in June 2022, reflecting an improvement in the company's ability to cover its interest expenses compared to the prior year.

In June 2021, the interest coverage ratio was 2.99, indicating that the company's operating income was able to cover its interest expenses almost 3 times. This ratio remained relatively stable compared to the previous year.

In June 2020, the interest coverage ratio was negative at -4.14, which suggests that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations during that period.

Overall, the trend in Adtalem Global Education Inc's interest coverage ratio shows variability over the past five years, with improvements in certain years and a significant decline in 2020. Monitoring this ratio is crucial for assessing the company's financial solvency and ability to meet interest payments.