CoreCivic Inc (CXW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,083,480 | 1,084,860 | 1,492,050 | 1,747,660 | 1,928,020 |
| Total assets | US$ in thousands | 3,105,400 | 3,244,770 | 3,498,940 | 3,709,320 | 3,791,630 |
| Debt-to-assets ratio | 0.35 | 0.33 | 0.43 | 0.47 | 0.51 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,083,480K ÷ $3,105,400K
= 0.35
CoreCivic Inc's debt-to-assets ratio has been exhibiting a decreasing trend over the past five years, declining from 0.52 in 2019 to 0.35 in 2023. This suggests that the company has been utilizing less debt relative to its total assets in recent years, which can be interpreted as a positive sign as it indicates a lower financial risk and a potentially stronger financial position.
A lower debt-to-assets ratio implies that CoreCivic relies less on debt financing to support its operations and investments, indicating a better ability to meet its financial obligations and potentially weather economic downturns. This trend could reflect improved financial management, better operational efficiency, or a shift towards alternative financing strategies.
Overall, the decreasing debt-to-assets ratio for CoreCivic Inc indicates a positive trajectory in managing its debt levels and optimizing its asset base, which may contribute to the company's overall financial stability and resilience in the long term.
Peer comparison
Dec 31, 2023