Adtalem Global Education Inc (ATGE)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 226,660 | 166,758 | 424,839 | 123,692 | -80,763 |
| Interest expense | US$ in thousands | 63,659 | 63,100 | 129,348 | 41,365 | 19,510 |
| Interest coverage | 3.56 | 2.64 | 3.28 | 2.99 | -4.14 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $226,660K ÷ $63,659K
= 3.56
Adtalem Global Education Inc's interest coverage has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations. The interest coverage ratio has increased steadily from 2020 to 2024, with values of -4.14, 2.99, 3.28, 2.64, and 3.56 respectively. The positive values in recent years suggest that the company's operating income is sufficiently higher than its interest expenses, reflecting a stronger financial position and decreased risk of default. The fluctuation in the ratio between 2021 and 2023 may indicate varying levels of profitability or changes in interest expenses during those years. Overall, the rising trend in interest coverage indicates a positive financial performance and the company's ability to comfortably meet its interest payments.
Peer comparison
Jun 30, 2024