Adtalem Global Education Inc (ATGE)

Financial leverage ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	2,752,350	2,789,760	2,722,960	2,817,710	2,741,420	2,715,030	2,700,920	2,794,160	2,810,540	2,867,120	2,843,040	2,996,050	3,029,180	3,518,460	3,659,770	3,768,190	3,053,840	3,031,000	2,244,660	2,329,900
Total stockholders’ equity	US$ in thousands	1,433,620	1,432,710	1,438,910	1,389,950	1,369,140	1,320,960	1,369,400	1,378,660	1,457,340	1,510,380	1,522,720	1,510,040	1,505,070	1,491,310	1,287,890	1,265,180	1,301,070	1,306,220	1,313,780	1,330,970
Financial leverage ratio		1.92	1.95	1.89	2.03	2.00	2.06	1.97	2.03	1.93	1.90	1.87	1.98	2.01	2.36	2.84	2.98	2.35	2.32	1.71	1.75

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 exhibits notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio decreased from 1.75 in September 2020 to a low of 1.71 in December 2020, indicating a relatively moderate use of debt relative to equity during this period. Subsequently, the ratio rose sharply to 2.32 by March 2021 and further to 2.35 in June 2021, signaling increased reliance on debt financing.

The upward trend continued, peaking at 2.98 in September 2021, suggestive of heightened leverage possibly aimed at funding expansion or managing liquidity needs. Following this peak, a gradual decline ensued, with the ratio declining to 2.84 at the end of 2021, and further decreasing to around 2.01 by June 2022. Throughout 2022, the leverage ratio stabilized somewhat, oscillating narrowly around the 2.0 mark, with minor fluctuations in the subsequent periods.

From late 2022 onward, the leverage ratio displayed a slight upward trajectory, reaching 2.06 by March 2024, and maintaining close to this level through mid-2025. This indicates a relatively stable leverage position over the more recent years, with the ratio remaining just below or around 2.0-2.1, suggesting a balanced approach to debt utilization.

Overall, the trend indicates periods of increased leverage corresponding with strategic shifts or market conditions around 2021, followed by a stabilization phase. The ratio’s maintenance around the 2.0 level in recent periods suggests the company is managing its debt levels prudently, avoiding excessive leverage while retaining the capacity for financial flexibility.