Grand Canyon Education Inc (LOPE)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 53,755 | 74,630 |
| Total stockholders’ equity | US$ in thousands | 783,853 | 718,014 | 637,619 | 1,045,050 | 1,574,330 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.05 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $783,853K
= 0.00
Grand Canyon Education Inc's debt-to-equity ratio has shown consistent and low levels of leverage over the years, with a ratio of 0.05 as of December 31, 2020, remaining stable at the same level as of December 31, 2021. However, a significant improvement is observed in the subsequent years, as the ratio decreases to 0.00 as of December 31, 2022, and remains at this minimal level for the following years up to December 31, 2024.
This trend indicates that the company has significantly reduced its reliance on debt financing in its capital structure, leading to a more balanced and less risky financial position. A lower debt-to-equity ratio suggests that Grand Canyon Education Inc is using less debt relative to equity to finance its operations and investments, which can enhance its financial stability and potentially improve its ability to withstand economic downturns.
Peer comparison
Dec 31, 2024