Grand Canyon Education Inc (LOPE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 275,399 | 259,708 | 240,121 | 334,890 | 337,542 |
| Interest expense | US$ in thousands | 4 | 33 | 2 | 3,601 | 4,402 |
| Interest coverage | 68,849.75 | 7,869.94 | 120,060.50 | 93.00 | 76.68 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $275,399K ÷ $4K
= 68,849.75
The interest coverage ratio for Grand Canyon Education Inc has shown a positive trend over the years, indicating the company's ability to meet its interest obligations. In December 2020, the interest coverage ratio was 76.68, which improved to 93.00 by December 2021. However, there was a significant spike in the ratio to 120,060.50 by December 2022, suggesting a substantial increase in the company's ability to cover its interest expenses.
Subsequently, the interest coverage ratio decreased to 7,869.94 by December 2023, indicating a temporary decline in the company's capacity to cover its interest payments. Despite this decline, the ratio remained relatively high compared to the initial years.
By December 2024, the interest coverage ratio increased significantly to 68,849.75, demonstrating a strong improvement in the company's ability to cover its interest costs. Overall, the fluctuation in the interest coverage ratio suggests that Grand Canyon Education Inc has been effectively managing its interest obligations, with occasional variations in its financial performance.
Peer comparison
Dec 31, 2024