Adtalem Global Education Inc (ATGE)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,369,140	1,320,960	1,369,400	1,378,660	1,457,340	1,510,380	1,509,220	1,496,020	1,491,390	1,478,950	1,276,990	1,265,180	1,293,520	1,306,220	1,313,780	1,330,970	1,309,750	1,294,560	1,294,910	1,327,190
Debt-to-capital ratio		0.32	0.33	0.34	0.34	0.32	0.31	0.31	0.33	0.36	0.45	0.56	0.56	0.45	0.45	0.18	0.18	0.18	0.26	0.24	0.20

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 of Adtalem Global Education Inc has fluctuated over the past few quarters. It stood at 0.32 as of June 30, 2024, indicating that 32% of the company's capital structure was financed by debt. This ratio has been relatively stable around the 0.30 to 0.36 range in recent quarters.

The trend shows a slight increase from the end of 2021 to mid-2022, with the ratio climbing from 0.56 to 0.36, indicating a higher level of debt relative to capital during that period. However, the ratio started to decrease from mid-2022 to mid-2023, reaching a low of 0.31, before slightly increasing again.

Overall, the debt-to-capital ratio suggests that Adtalem Global Education Inc has been managing its debt levels effectively, with a reasonable proportion of its capital structure being supported by debt. Monitoring this ratio going forward will be important to assess the company's leverage and financial risk.