Grand Canyon Education Inc (LOPE)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	1,018,420	992,926	992,691	1,035,570	930,463	863,156	846,217	874,021	832,749	784,544	787,303	918,386	1,222,740	1,680,460	1,846,970	1,885,030	1,844,580	1,800,560	1,790,280	1,731,600
Total stockholders’ equity	US$ in thousands	783,853	764,137	759,195	759,447	718,014	650,530	645,425	659,250	637,619	591,556	606,638	706,437	1,045,050	1,400,780	1,542,680	1,588,680	1,574,330	1,520,980	1,489,390	1,448,010
Financial leverage ratio		1.30	1.30	1.31	1.36	1.30	1.33	1.31	1.33	1.31	1.33	1.30	1.30	1.17	1.20	1.20	1.19	1.17	1.18	1.20	1.20

December 31, 2024 calculation

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

The financial leverage ratio of Grand Canyon Education Inc has shown some fluctuations over the past few years. The ratio was relatively stable around 1.20 in the first half of 2020, indicating a balanced mix of debt and equity in financing the company's operations.

However, there was a slight decrease in the ratio by the end of 2020 to 1.17, suggesting a decrease in the company's reliance on debt for funding. This trend continued into the first half of 2021 as the ratio increased to 1.19 and 1.20.

In the second half of 2021, the financial leverage ratio remained stable at around 1.20, indicating a consistent capital structure. From the first quarter of 2022 to the third quarter of 2023, there was a gradual increase in the ratio, reaching a peak of 1.36 in the first quarter of 2024. This increase suggests a potential increase in the company's debt relative to equity.

By the second half of 2024, the financial leverage ratio decreased to around 1.30, showing some stabilization. Overall, the financial leverage ratio of Grand Canyon Education Inc has exhibited some fluctuations but has generally maintained a moderate level, reflecting a balanced approach to capital structure management. Further monitoring of this ratio is recommended to assess the company's ongoing capital structure decisions and financial risk.