Adtalem Global Education Inc (ATGE)

Debt-to-equity 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-equity ratio 0.47 0.48 0.56 0.83 0.22

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $648,712K ÷ $1,369,140K
= 0.47

The debt-to-equity ratio of Adtalem Global Education Inc has shown fluctuations over the past five years. As of June 30, 2024, the ratio stands at 0.47, indicating that the company carries less debt relative to its equity. The trend over the years shows a slight decrease from 0.48 in 2023, which could signify improved financial health and a better balance between debt and equity.

Comparing to the ratio in 2022 and 2021, which were 0.56 and 0.83 respectively, the current ratio reflects a more favorable position in terms of leverage. In particular, the significant drop from 0.83 in 2021 to 0.47 in 2024 suggests that the company has reduced its reliance on debt financing or increased its equity base during this period.

It is worth noting that the ratio was substantially lower in 2020 at 0.22, indicating a high level of equity relative to debt, which could have been influenced by strategic decisions or financial restructuring during that year. Overall, the downward trend in the debt-to-equity ratio of Adtalem Global Education Inc over the past years implies a potentially stronger financial position and lower risk associated with debt obligations.