Adtalem Global Education Inc (ATGE)

Debt-to-assets ratio

Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 648,712 648,106 696,373 695,725 695,077 694,429 693,781 741,696 838,908 1,225,360 1,599,540 1,600,040 1,067,710 1,067,560 284,131 285,621 286,115 446,610 412,105 327,600
Total assets US$ in thousands 2,741,420 2,715,030 2,700,920 2,794,160 2,810,540 2,867,120 2,843,040 2,996,050 3,030,240 3,519,920 3,659,770 3,799,060 3,084,840 3,061,780 2,274,880 2,329,900 2,258,060 2,444,020 2,390,610 2,460,320
Debt-to-assets ratio 0.24 0.24 0.26 0.25 0.25 0.24 0.24 0.25 0.28 0.35 0.44 0.42 0.35 0.35 0.12 0.12 0.13 0.18 0.17 0.13

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $648,712K ÷ $2,741,420K
= 0.24

The debt-to-assets ratio of Adtalem Global Education Inc has shown fluctuations over the past few quarters, ranging from 0.12 to 0.44. This ratio indicates the proportion of the company's assets that are financed through debt.

A lower debt-to-assets ratio typically suggests lower financial risk and a stronger financial position, as it indicates that the company relies less on debt to finance its operations. Conversely, a higher ratio could indicate higher financial leverage and potential repayment challenges.

In the case of Adtalem Global Education Inc, the ratio has generally remained within a moderate range, peaking at 0.44 in the first quarter of 2022 and fluctuating between 0.12 and 0.28 in more recent quarters. This suggests that the company has utilized varying levels of debt to finance its assets, with some quarters showing higher reliance on debt compared to others.

It would be important for stakeholders to analyze the trend of this ratio over time and consider it in conjunction with other financial metrics to assess the company's overall financial health and debt management practices.