Adtalem Global Education Inc (ATGE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Adtalem Global Education Inc.'s solvency ratios over the provided period reveals notable characteristics. The debt-to-assets, debt-to-capital, and debt-to-equity ratios are consistently reported as zero throughout all surveyed dates, indicating an absence of reported debt or leverage from the data provided. This persistent zero value suggests that the company may have a debt-free capital structure or that its liabilities are not captured within these specific ratios, potentially due to the nature of its financial reporting, restructuring, or other factors.
In contrast, the financial leverage ratio demonstrates variability over time, with values ranging from approximately 1.71 to 2.98. Initially, in September 2020, the ratio was at 1.75, decreasing slightly to 1.71 by the end of that year. During early to mid-2021, the ratio increased, peaking at 2.98 in September 2021, implying a period of increased financial leverage or effective use of debt relative to equity during that interval. Subsequently, there was a gradual decline, stabilizing around 1.87 to 2.06 from late 2021 through mid-2024, indicating a moderation in leverage levels.
Overall, while traditional debt-based solvency indicators appear negligible or nonexistent according to the provided data, the financial leverage ratio suggests the company maintained a moderate to high degree of leverage during certain periods, with fluctuations that point to strategic or operational shifts in capital structure. The absence of significant debt ratios raises questions about the company's leverage strategy, reliance on internal financing, or differences in reporting standards, but the leverage ratio nonetheless offers a nuanced view of its financial structure over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.52 | 6.30 | 5.71 | 4.86 | 4.07 | 3.37 | 3.21 | 2.96 | 2.77 | 2.63 | 1.66 | 1.31 | 0.45 | 0.41 | 0.66 | 0.88 | 3.88 | 6.25 | 14.52 | 12.54 |
The interest coverage ratios for Adtalem Global Education Inc. over the specified period reveal a fluctuating trend with initial high levels of coverage followed by a significant decline, and a subsequent recovery and upward trajectory.
Between September 2020 and December 2020, the ratio was robust, increasing from 12.54 to 14.52, indicating a strong ability to service interest expenses relative to earnings during this period. However, this trend sharply reversed starting in the first quarter of 2021, with the ratio declining to 6.25 and then further decreasing to a low of 0.88 by September 2021. The ratio continued to weaken, reaching 0.66 at the end of 2021 and dropping below 1.0 for the first time in March 2022 at 0.41, signaling a critical concern about the company's capacity to cover interest expenses solely from its earnings.
Following this low point, the interest coverage ratio experienced a gradual improvement, rising modestly to 0.45 in June 2022, and then more notably to 1.31 by September 2022. The upward trend continued into the subsequent quarters, with ratios increasing to 1.66 at the end of 2022, and to 2.63 in the first quarter of 2023. The recovery persisted through 2023, with ratios reaching 2.77 in June and 2.96 in September.
From the third quarter of 2023 onward, the interest coverage ratio demonstrates a sustained and considerable upward momentum, reaching 3.21 at the end of 2023, and further improving to 3.37 in the first quarter of 2024. The positive trend continued into mid-2024 and beyond, with ratios climbing to 4.07 in June 2024, 4.86 in September 2024, and reaching as high as 5.71 by the end of 2024. Projections for 2025 indicate continued strength, with ratios estimated at 6.30 in the first quarter and 6.52 in the second quarter of 2025.
Overall, the data illustrates a period of financial stress in early 2022, characterized by very low or marginal interest coverage, followed by a steady and strong recovery in subsequent periods. The trend suggests an enhancement in the company's earnings capacity relative to interest obligations, reflecting improved profitability, better cash flow management, or strategic operational adjustments over time.