Grand Canyon Education Inc (LOPE)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	1,018,420	930,463	832,749	1,222,740	1,844,580
Total stockholders’ equity	US$ in thousands	783,853	718,014	637,619	1,045,050	1,574,330
Financial leverage ratio		1.30	1.30	1.31	1.17	1.17

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,018,420K ÷ $783,853K
= 1.30

Grand Canyon Education Inc's financial leverage ratio has shown a relatively stable trend from 2020 to 2021, remaining constant at 1.17. However, from 2021 to 2024, there was a gradual increase in the ratio, reaching 1.30 by December 31, 2024. This implies that the company's reliance on debt to finance its operations and growth has slightly increased over the period under review. The increase may indicate a strategic decision to leverage debt to support expansion or investment initiatives. It's essential for investors and stakeholders to monitor this ratio to assess the company's overall financial health and risk profile related to debt.