CoreCivic Inc (CXW)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.35	0.33	0.43	0.47	0.51
Debt-to-capital ratio	0.42	0.43	0.52	0.56	0.58
Debt-to-equity ratio	0.73	0.76	1.09	1.26	1.40
Financial leverage ratio	2.10	2.27	2.55	2.67	2.75

The solvency ratios of CoreCivic Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt funding.

The Debt-to-assets ratio has shown a decreasing trend from 0.52 in 2019 to 0.35 in 2023, indicating that CoreCivic Inc has reduced its reliance on debt to finance its assets over the years.

The Debt-to-capital ratio has also displayed a decreasing trend, declining from 0.59 in 2019 to 0.43 in 2023. This suggests that the company has reduced its debt relative to its total capital employed in its operations.

The Debt-to-equity ratio has exhibited a similar downward trajectory, falling from 1.43 in 2019 to 0.75 in 2023. This signifies that CoreCivic Inc's reliance on debt in relation to equity has decreased over the period analyzed.

The Financial leverage ratio has followed a decreasing pattern, dropping from 2.75 in 2019 to 2.10 in 2023. This implies that the company's level of financial leverage has decreased, signaling a potentially reduced financial risk.

Overall, the decreasing trends in these solvency ratios indicate an improvement in CoreCivic Inc's financial leverage and debt management practices, suggesting a stronger financial position and enhanced ability to meet its long-term obligations.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	2.31	2.95	2.01	1.70	3.33

CoreCivic Inc's interest coverage ratio has fluctuated over the past five years. The ratio indicates the company's ability to meet its interest obligations with its operating income. In 2023, the interest coverage ratio improved to 2.34 from 2.07 in 2022, reflecting a stronger ability to cover interest expenses with operating income. This suggests that the company may have a more comfortable cushion to handle interest payments. However, it is worth noting that the ratio was higher in 2021 at 2.98 and in 2020 at 2.69. The lowest ratio was in 2019 at 1.88, indicating a potential strain on the company's ability to meet interest obligations that year. Overall, the trend in interest coverage for CoreCivic Inc shows some variability, but the recent improvement in 2023 is a positive sign for the company's financial health.