Adtalem Global Education Inc (ATGE)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	2,741,420	2,810,540	3,030,240	3,084,840	2,258,060
Total stockholders’ equity	US$ in thousands	1,369,140	1,457,340	1,491,390	1,293,520	1,309,750
Financial leverage ratio		2.00	1.93	2.03	2.38	1.72

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,741,420K ÷ $1,369,140K
= 2.00

The financial leverage ratio of Adtalem Global Education Inc has fluctuated over the past five years. The ratio stood at 1.72 in 2020, increased to 2.38 in 2021, then decreased to 2.03 in 2022, and further declined to 1.93 in 2023. It reached 2.00 in 2024.

A financial leverage ratio of 2.00 in 2024 suggests that the company has $2 of debt for every $1 of equity. This indicates a moderate level of financial leverage, implying that the company relies more on debt financing to fund its operations and growth.

The fluctuation in the financial leverage ratio could indicate changes in the company's capital structure and debt levels over the years. It's important for stakeholders to monitor these changes to assess the company's ability to meet its financial obligations and manage its debt effectively.