Adtalem Global Education Inc (ATGE)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	2,752,350	2,741,420	2,810,540	3,029,180	3,053,840
Total stockholders’ equity	US$ in thousands	1,433,620	1,369,140	1,457,340	1,505,070	1,301,070
Financial leverage ratio		1.92	2.00	1.93	2.01	2.35

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,752,350K ÷ $1,433,620K
= 1.92

The financial leverage ratio of Adtalem Global Education Inc has exhibited variability over the analyzed period from June 30, 2021, to June 30, 2025. At the end of the fiscal year 2021, the ratio stood at 2.35, reflecting a relatively higher degree of leverage, indicating that the company used more debt relative to equity to finance its assets. By June 30, 2022, this ratio decreased to 2.01, suggesting a reduction in leverage, potentially reflecting debt repayment or strategic deleveraging activities. The ratio continued to decline marginally to 1.93 as of June 30, 2023, further emphasizing a trend towards reduced financial leverage.

In the subsequent period, the ratio experienced a slight uptick to 2.00 by June 30, 2024, indicating a modest increase in leverage, which could be attributed to additional debt issuance or asset growth financed through debt. However, by June 30, 2025, the ratio slightly decreased again to 1.92, aligning closely with the figure from the prior year, and maintaining a level that suggests a relatively stable but moderate leverage position.

Overall, the trend indicates that the company's financial leverage has generally been decreasing from its peak in 2021, reflecting efforts or circumstances leading to a lower reliance on debt financing. The fluctuations are relatively minor and suggest a strategic or operational balancing act to maintain leverage at a moderate level, consistent with prudent financial management.