Geo Group Inc (GEO)
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 | 1,725,500 | 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-equity ratio | 1.34 | 1.66 | 2.69 | 2.12 | 2.42 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,725,500K ÷ $1,291,770K
= 1.34
The debt-to-equity ratio of Geo Group, Inc. has exhibited a fluctuating trend over the past five years. In 2023, the ratio decreased to 1.38 from 1.70 in 2022, indicating a positive shift towards lower reliance on debt financing relative to equity. However, compared to the ratio of 3.02 in 2021 and 3.19 in 2020, the company has significantly reduced its debt burden. These past two years showed a considerable increase in leverage, suggesting a higher proportion of debt compared to equity in the company's capital structure. In 2019, the ratio stood at 2.75, reflecting a moderate level of debt compared to equity.
The significant variations in the debt-to-equity ratio over the years may indicate changes in the company's capital structure, financial strategy, or economic conditions impacting its financing decisions. It is essential for stakeholders to closely monitor these trends to assess the company's risk exposure, financial stability, and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023