Geo Group Inc (GEO)

Solvency ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.47 0.48 0.50 0.51 0.51 0.53 0.57 0.57 0.58 0.57 0.58 0.56 0.43 0.55 0.56 0.57 0.56 0.55 0.55 0.56
Debt-to-capital ratio 0.57 0.59 0.60 0.61 0.62 0.64 0.71 0.72 0.73 0.72 0.73 0.73 0.68 0.72 0.72 0.71 0.71 0.70 0.70 0.70
Debt-to-equity ratio 1.34 1.42 1.50 1.57 1.66 1.76 2.40 2.57 2.69 2.58 2.67 2.65 2.12 2.51 2.51 2.47 2.42 2.34 2.30 2.37
Financial leverage ratio 2.86 2.96 2.98 3.08 3.22 3.33 4.25 4.51 4.65 4.50 4.63 4.70 4.88 4.55 4.49 4.37 4.33 4.25 4.21 4.27

Geo Group, Inc.'s solvency ratios show a trend of increasing leverage over the past eight quarters. The debt-to-assets ratio has been increasing steadily, indicating that the company's proportion of debt to total assets has been rising. Similarly, the debt-to-capital and debt-to-equity ratios have also been on the rise, indicating higher levels of debt in relation to both total capital and equity.

Furthermore, the financial leverage ratio, which reflects the company's level of debt in relation to its assets, indicates a continuous increase in leverage over the quarters analyzed. This suggests that Geo Group, Inc. is relying more on debt financing to fund its operations and investments.

Overall, the solvency ratios paint a picture of increasing financial risk for Geo Group, Inc. as its debt levels continue to rise relative to its assets, capital, and equity. This trend may raise concerns about the company's ability to meet its debt obligations in the long term and its overall financial stability.


Coverage ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 1.65 1.77 1.89 2.17 2.43 2.59 2.71 2.53 2.55 2.30 2.32 2.29 2.05 2.20 2.20 2.17 2.21 2.15 2.08 2.07

Geo Group, Inc.'s interest coverage ratio has shown a declining trend over the last eight quarters based on the provided data. The interest coverage ratio decreased from 2.93 in Q1 2022 to 1.70 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time.

A declining interest coverage ratio may signal potential financial distress, as it suggests that the company may be less capable of meeting its interest obligations from its operating earnings. Investors and creditors often view a lower interest coverage ratio as a red flag, as it may imply heightened financial risk for the company.

It is essential for Geo Group, Inc. to closely monitor and address this trend to ensure its long-term financial stability and ability to meet its debt obligations. The company may need to explore options to increase its operating income or reduce its interest expenses to improve its interest coverage ratio and maintain the confidence of stakeholders.