Geo Group Inc (GEO)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.47	0.51	0.58	0.43	0.56
Debt-to-capital ratio	0.57	0.62	0.73	0.68	0.71
Debt-to-equity ratio	1.34	1.66	2.69	2.12	2.42
Financial leverage ratio	2.86	3.22	4.65	4.88	4.33

Geo Group, Inc.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Over the five-year period, the Debt-to-assets ratio has fluctuated, decreasing from 0.64 in 2019 to 0.48 in 2023, indicating a lower proportion of assets financed by debt at the end of the period.

Similarly, the Debt-to-capital ratio has shown a declining trend from 0.73 in 2019 to 0.58 in 2023, demonstrating improved capital structure efficiency. The Debt-to-equity ratio has also exhibited a downward trajectory from 2.75 in 2019 to 1.38 in 2023, suggesting a reduced reliance on equity in financing operations.

The Financial leverage ratio, which measures the extent to which the company relies on debt financing, has decreased from 4.33 in 2019 to 2.86 in 2023, indicating a lower level of financial leverage and potentially lower financial risk.

Overall, the trend in solvency ratios for Geo Group, Inc. reflects a positive shift towards a more sustainable and balanced capital structure, with decreasing reliance on debt financing and improved financial stability over the five-year period.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	1.65	2.43	2.55	2.05	2.21

Geo Group, Inc.'s interest coverage has shown a fluctuating trend over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates the company is more capable of servicing its debt.

In the recent year end of Dec 31, 2023, the interest coverage ratio has decreased to 1.70 from 2.63 in Dec 31, 2022. This decline suggests a potential weakening in the company's ability to cover its interest expenses with its operating income. It may indicate a decrease in profitability or an increase in interest expenses.

Comparing the current ratio to the ratios from the prior years, it is evident that the company's interest coverage has been declining since 2021. This downward trend could raise concerns about the company's ability to manage its debt obligations effectively.

Further analysis and scrutiny of the company's financial health and performance are recommended to understand the reasons behind the fluctuating interest coverage ratio and to assess any potential risks associated with its current debt levels.