Adtalem Global Education Inc (ATGE)

Debt-to-equity 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-equity ratio		0.47	0.49	0.51	0.50	0.48	0.46	0.46	0.50	0.56	0.83	1.25	1.26	0.83	0.82	0.22	0.21	0.22	0.34	0.32	0.25

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 fluctuated over the past few years, ranging from a low of 0.21 to a high of 1.26. A lower debt-to-equity ratio indicates a lower level of financial risk, as it suggests the company relies less on debt to finance its operations. Conversely, a higher ratio may indicate higher financial risk as it shows a higher proportion of debt in the company's capital structure.

Analyzing the trend, we can see that the debt-to-equity ratio increased steadily from 2019 to 2021, reaching its peak at 1.26 in March 2022. This upward trend suggests that the company was taking on more debt relative to equity during this period. However, from late 2021 to mid-2023, the ratio gradually decreased, indicating a reduction in debt relative to equity, which could be a positive sign for the company's financial health.

It's worth noting that in the most recent periods, the ratio has remained relatively stable around 0.47 to 0.51, indicating a balanced capital structure with a moderate level of debt compared to equity. Overall, while the company had a period of higher leverage in the past, it seems to have made efforts to reduce its debt levels in recent quarters, resulting in a more moderate debt-to-equity ratio.