Grand Canyon Education Inc (LOPE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.04 | 0.04 | 0.06 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.05 | 0.05 | 0.07 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.05 | 0.05 | 0.07 |
| Financial leverage ratio | 1.30 | 1.31 | 1.17 | 1.17 | 1.17 |
Based on the solvency ratios of Grand Canyon Education Inc provided in the table, the company demonstrates a strong financial position in terms of solvency and leverage.
The debt-to-assets ratio has been consistently at 0.00 over the past five years, indicating that the company has not relied on debt to finance its assets during this period. This implies that all assets are primarily funded by equity rather than debt, which is a positive indicator of financial stability.
Similarly, the debt-to-capital and debt-to-equity ratios have also remained at 0.00 for the same period, reinforcing the notion that the company has very little to no debt relative to its capital and shareholders' equity. This signifies a low risk of financial distress due to debt obligations.
The financial leverage ratio has fluctuated slightly between 1.17 and 1.31, with the latest value at 1.30 as of December 31, 2023. Although this ratio measures the proportion of debt in the company's capital structure, it is still relatively low, indicating that the company relies more on equity financing than debt.
Overall, based on the solvency ratios provided, Grand Canyon Education Inc appears to have a very strong solvency position with minimal debt levels relative to its assets, capital, and equity. This suggests that the company is well-positioned to meet its financial obligations and has a stable financial foundation.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7,869.94 | 120,060.50 | 93.00 | 76.68 | 29.07 |
The interest coverage ratio for Grand Canyon Education Inc has shown significant fluctuations over the past five years. In 2019, the interest coverage was not available. In 2020, it remained unreported. However, in 2021, there was once again no data provided. In 2022, there was a substantial increase in the interest coverage ratio to 118,750.00. This surge suggests a significant improvement in the company's ability to cover its interest payments with operating income. Further, in 2023, the interest coverage ratio skyrocketed to 7,553.21, indicating a significant enhancement in the company's financial health and capacity to meet interest obligations. This trend indicates a positive trajectory in Grand Canyon Education Inc's ability to cover its interest expenses in recent years.