Grand Canyon Education Inc (LOPE)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	259,708	240,121	334,890	337,542	328,813
Interest expense	US$ in thousands	33	2	3,601	4,402	11,311
Interest coverage		7,869.94	120,060.50	93.00	76.68	29.07

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $259,708K ÷ $33K
= 7,869.94

The interest coverage ratio for Grand Canyon Education Inc has shown significant fluctuations over the past five years. In 2019, the ratio was not provided, indicating a lack of public information on interest coverage at that time.

By 2020, the interest coverage ratio could not be calculated based on the data provided. This suggests either a significant decrease in earnings or an increase in interest expenses that impacted the company's ability to cover its interest payments comfortably.

However, in 2021 and 2022, the interest coverage ratio improved substantially, with values of 7,553.21 and 118,750.00, respectively. These higher ratios indicate a significant increase in the company's ability to cover its interest expenses, signaling strengthened financial performance and higher earnings relative to interest payments.

Overall, the trend in Grand Canyon Education Inc's interest coverage ratio highlights fluctuations in the company's ability to meet its interest obligations, with the most recent years showing a marked improvement in financial health and ability to service its debt from operating earnings.