Adtalem Global Education Inc (ATGE)

Solvency ratios

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
Debt-to-assets ratio 0.24 0.24 0.26 0.25 0.25 0.24 0.24 0.25 0.28 0.35 0.44 0.42 0.35 0.35 0.12 0.12 0.13 0.18 0.17 0.13
Debt-to-capital ratio 0.32 0.33 0.34 0.34 0.32 0.31 0.31 0.33 0.36 0.45 0.56 0.56 0.45 0.45 0.18 0.18 0.18 0.26 0.24 0.20
Debt-to-equity ratio 0.47 0.49 0.51 0.50 0.48 0.46 0.46 0.50 0.56 0.83 1.25 1.26 0.83 0.82 0.22 0.21 0.22 0.34 0.32 0.25
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

Analysing the solvency ratios of Adtalem Global Education Inc over the past few quarters, we can observe the following trends:
- The debt-to-assets ratio has remained relatively stable around 0.24 to 0.28 over the last few quarters, indicating that the company has been able to maintain a conservative level of debt in relation to its total assets.
- The debt-to-capital ratio has also shown consistency, hovering between 0.31 to 0.36, demonstrating a moderate level of debt in relation to the company's total capital structure.
- The debt-to-equity ratio has exhibited a slight upward trend, increasing from 0.46 in March 2021 to 0.83 in September 2021, and peaking at 1.26 in March 2022. This suggests a significant increase in financial leverage and reliance on debt financing during this period.
- The financial leverage ratio has fluctuated between 1.88 to 3.00 over the quarters, indicating varying levels of financial risk and dependence on debt to fund operations and investments.

Overall, Adtalem Global Education Inc's solvency ratios have shown some stability in terms of debt levels relative to assets and capital, but there has been an apparent increase in leverage and reliance on debt financing, particularly in the period from March 2021 to March 2022. It would be important for the company to closely monitor and manage its debt levels to maintain a healthy financial position and mitigate any potential solvency risks.

Coverage ratios

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
Interest coverage 3.56 3.11 3.16 2.88 2.63 2.61 5.49 4.53 3.32 3.05 0.69 1.18 3.23 -9.35 -3.68 -4.11 -4.14 13.22 7.97 8.78

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Looking at the historical trend of Adtalem Global Education Inc's interest coverage ratio, we can see fluctuations in the ratio over time. From December 2019 to March 2021, the interest coverage ratio was relatively high, indicating the company's ability to comfortably cover its interest expenses. However, there was a significant decline in the interest coverage ratio in the following quarters, particularly in the third and fourth quarters of 2021, where the ratio turned negative. This suggests that the company may have faced challenges in meeting its interest payments with its operating income during that period.

Subsequently, there was a recovery in the interest coverage ratio in 2022, with the ratio improving but remaining relatively lower compared to the earlier period of high coverage. In the most recent quarter, the interest coverage ratio stands at a moderate level, indicating a reasonable ability to cover interest expenses.

Overall, a detailed analysis of the interest coverage ratio of Adtalem Global Education Inc shows fluctuations over time, with periods of strong coverage followed by challenges in meeting interest obligations. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt repayment capacity.