Geo Group Inc (GEO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.72 | 2.86 | 3.23 | 4.65 | 4.89 |
Geo Group Inc has consistently maintained a strong solvency position over the years, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been consistently at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company has not relied heavily on debt financing to fund its operations and investments, resulting in a low level of financial risk associated with the company's capital structure.
Additionally, the company's financial leverage ratio has shown a declining trend over the same period, decreasing from 4.89 on December 31, 2020, to 2.72 on December 31, 2024. This indicates that Geo Group Inc has been effectively managing its debt levels relative to its equity, resulting in a decreasing reliance on debt to finance its assets and operations. Overall, these solvency ratios reflect a stable and strong financial position for Geo Group Inc, with a conservative approach to debt management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.20 | 1.63 | -8.97 | -11.94 | -13.57 |
To analyze Geo Group Inc's interest coverage based on the provided data:
1. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a better ability to cover interest expenses.
2. In 2020, Geo Group Inc had an interest coverage ratio of -13.57, which implies that the company's operating income was insufficient to cover its interest expenses, indicating financial distress.
3. The trend continues in 2021 and 2022, with interest coverage ratios of -11.94 and -8.97 respectively, showing a persistent inability to meet interest obligations from operating income.
4. However, there is a notable improvement in 2023, with an interest coverage ratio of 1.63, indicating that the company's operating income is now able to cover its interest expenses.
5. This positive trend continues in 2024, with an interest coverage ratio of 1.20, further demonstrating the company's improved ability to meet its interest obligations.
In summary, Geo Group Inc faced significant challenges in meeting its interest obligations in the past, but the company has shown improvement in recent years with positive interest coverage ratios in 2023 and 2024.