Grand Canyon Education Inc (LOPE)

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	—	—	53,755	74,630	107,774
Total stockholders’ equity	US$ in thousands	718,014	637,619	1,045,050	1,574,330	1,443,430
Debt-to-capital ratio		0.00	0.00	0.05	0.05	0.07

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $718,014K)
= 0.00

The debt-to-capital ratio for Grand Canyon Education Inc has shown a consistent trend of decreasing over the past five years. As of December 31, 2023, the company's debt-to-capital ratio stands at 0.00, indicating that the company has no debt in its capital structure.

This is a significant improvement compared to the ratios of 0.06 in 2020 and 0.09 in 2019, demonstrating that the company has been effectively managing its debt levels and reducing its reliance on debt financing.

A debt-to-capital ratio of 0.00 suggests that Grand Canyon Education Inc is primarily funded by equity rather than debt, which can be viewed positively by investors and creditors as it indicates a lower financial risk and greater financial stability.

Overall, the declining trend in the debt-to-capital ratio reflects a healthier financial position and improved capital structure for Grand Canyon Education Inc. It also signals a prudent approach towards managing its debt obligations and enhancing its long-term financial sustainability.