Adtalem Global Education Inc (ATGE)

Debt-to-capital ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	648,712	695,077	838,908	1,067,710	286,115
Total stockholders’ equity	US$ in thousands	1,369,140	1,457,340	1,491,390	1,293,520	1,309,750
Debt-to-capital ratio		0.32	0.32	0.36	0.45	0.18

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $648,712K ÷ ($648,712K + $1,369,140K)
= 0.32

The debt-to-capital ratio for Adtalem Global Education Inc has been relatively stable over the past five years, ranging from 0.18 in 2020 to 0.45 in 2021. A lower debt-to-capital ratio indicates a lower reliance on debt financing compared to equity, whereas a higher ratio suggests a higher level of debt in the capital structure.

In 2020, the company had a lower debt-to-capital ratio of 0.18, indicating a lower proportion of debt relative to total capital, which could signify a more conservative capital structure. The ratio increased to 0.45 in 2021, suggesting a significant increase in debt relative to capital, which could potentially indicate a more aggressive financing strategy or financial challenges.

Subsequently, the ratio decreased to 0.36 in 2022 and remained stable at 0.32 in 2023 and 2024. This indicates that the company may have adjusted its capital structure in response to the increase in 2021, possibly by reducing debt or increasing equity.

Overall, the trend in the debt-to-capital ratio for Adtalem Global Education Inc suggests a mix of conservative and possibly growth-oriented financial strategies over the past five years, with fluctuations indicating shifts in the company's approach to capital financing.