Geo Group Inc (GEO)
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 | 1,725,500 | 1,933,140 | 2,625,960 | 1,933,140 | 2,408,300 |
| Total assets | US$ in thousands | 3,696,410 | 3,760,380 | 4,537,410 | 4,460,130 | 4,317,530 |
| Debt-to-assets ratio | 0.47 | 0.51 | 0.58 | 0.43 | 0.56 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,725,500K ÷ $3,696,410K
= 0.47
The debt-to-assets ratio of Geo Group, Inc. has shown a declining trend over the past five years, indicating improving solvency and financial health. From 2019 to 2023, the ratio decreased from 0.64 to 0.48. This suggests that the company has been successful in managing its debt levels relative to its total assets.
A decreasing debt-to-assets ratio can signify that the company has been paying off its debt, reducing financial risk, and potentially enhancing its ability to secure future financing at favorable terms. It also indicates a stronger ability to cover its obligations with its existing assets.
However, it is important to note that while a decreasing trend in the debt-to-assets ratio is generally positive, the absolute level of the ratio should be considered in conjunction with other financial metrics to comprehensively assess the company's overall financial position and leverage.
Peer comparison
Dec 31, 2023