Geo Group Inc (GEO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,291,770 | 1,166,400 | 976,211 | 913,102 | 996,830 |
| Debt-to-capital ratio | 0.57 | 0.62 | 0.73 | 0.68 | 0.71 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,725,500K ÷ ($1,725,500K + $1,291,770K)
= 0.57
The debt-to-capital ratio of Geo Group, Inc. has shown a mixed trend over the past five years. The ratio has decreased from 0.73 in 2019 to 0.58 in 2023, indicating a lower reliance on debt to finance the company's operations relative to its capital structure. This downward trend suggests a potential improvement in the company's leverage position and financial stability.
However, it's important to note that there was a slight increase in the ratio from 2022 to 2023, moving from 0.63 to 0.58. This uptick may signal an increase in the company's debt levels relative to its capital, which could potentially raise concerns about the company's ability to manage its debt obligations effectively.
Overall, Geo Group, Inc.'s debt-to-capital ratio analysis suggests a general trend of decreasing leverage over the past five years, with a recent slight increase in 2023. This ratio is an important metric for assessing the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2023