Adtalem Global Education Inc (ATGE)

Financial leverage 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
Total assets	US$ in thousands	2,741,420	2,715,030	2,700,920	2,794,160	2,810,540	2,867,120	2,843,040	2,996,050	3,030,240	3,519,920	3,659,770	3,799,060	3,084,840	3,061,780	2,274,880	2,329,900	2,258,060	2,444,020	2,390,610	2,460,320
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
Financial leverage ratio		2.00	2.06	1.97	2.03	1.93	1.90	1.88	2.00	2.03	2.38	2.87	3.00	2.38	2.34	1.73	1.75	1.72	1.89	1.85	1.85

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 several quarters, indicating varying levels of financial leverage used by the company. The ratio ranged from a low of 1.72 to a high of 3.00 during the period covered by the data.

The trend in the financial leverage ratio shows an increase from the end of 2021 through mid-2022, peaking at 3.00 in the third quarter of 2022. This suggests the company significantly increased its reliance on debt to finance its operations and investments during this period.

Subsequently, the financial leverage ratio declined in the following quarters, indicating a potential deleveraging or a shift towards a less leveraged capital structure. The ratio fluctuated around the 2.00 mark in the later quarters, indicating a more moderate level of financial leverage compared to the peak observed in mid-2022.

Overall, the financial leverage ratio of Adtalem Global Education Inc has shown variability over the past two years, with periods of significant leverage followed by moderation. Investors and stakeholders may interpret this fluctuation as the company adjusting its capital structure to manage risk and optimize its financial position. However, continued monitoring of the company's leverage levels and debt management strategies would be advisable to assess its financial health and sustainability.