Grand Canyon Education Inc (LOPE)

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	—	—	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-equity ratio		0.00	0.00	0.05	0.05	0.07

December 31, 2023 calculation

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

The debt-to-equity ratio of Grand Canyon Education Inc has exhibited a decreasing trend over the past five years. As of December 31, 2023, the company reported a debt-to-equity ratio of 0.00, indicating that there is no debt on the company's balance sheet relative to its equity. This signifies a strong financial position with no financial leverage through debt.

The consistent trend of a debt-to-equity ratio of 0.00 from 2021 to 2023 reflects a conservative financial structure and a reduced reliance on external borrowing. In contrast, the company had slightly higher levels of debt relative to equity in the prior years, with ratios of 0.07 in 2020 and 0.10 in 2019. This indicates that the company has actively managed its debt levels in recent years to enhance its financial stability and reduce financial risks.

Overall, the decreasing debt-to-equity ratio of Grand Canyon Education Inc signals prudent financial management and a stronger equity base compared to its debt obligations, which can contribute to long-term sustainability and growth prospects for the company.