CoreCivic Inc (CXW)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,477,570 | 1,432,410 | 1,372,470 | 1,390,170 | 1,376,750 |
| Debt-to-equity ratio | 0.73 | 0.76 | 1.09 | 1.26 | 1.40 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,083,480K ÷ $1,477,570K
= 0.73
CoreCivic Inc's debt-to-equity ratio has been decreasing over the past five years, indicating a reduction in the company's reliance on debt financing relative to shareholder equity. In 2019, the ratio was at its highest at 1.43, signifying a higher proportion of debt compared to equity. However, since then, there has been a consistent downward trend in the ratio, reaching 0.75 by the end of 2023.
The declining trend in the debt-to-equity ratio suggests that CoreCivic Inc has been effectively managing its debt levels and/or enhancing its equity position. A lower ratio generally indicates a lower financial risk for the company, as it shows a more balanced capital structure with less dependence on borrowing.
Overall, the decreasing debt-to-equity ratio of CoreCivic Inc highlights a positive financial trend, demonstrating a healthier balance between debt and equity in the company's capital structure over the years.
Peer comparison
Dec 31, 2023