Grand Canyon Education Inc (LOPE)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 279,128 279,870 275,972 271,285 259,708 250,944 242,924 239,081 240,121 258,286 282,594 313,664 334,890 337,006 342,546 340,716 337,542 322,443 332,535 337,250
Interest expense (ttm) US$ in thousands 4 10 11 16 33 24 23 21 2 1,303 2,044 2,802 3,601 3,168 3,345 3,655 4,402 6,480 8,437 10,271
Interest coverage 69,782.00 27,987.00 25,088.36 16,955.31 7,869.94 10,456.00 10,561.91 11,384.81 120,060.50 198.22 138.26 111.94 93.00 106.38 102.41 93.22 76.68 49.76 39.41 32.84

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $279,128K ÷ $4K
= 69,782.00

Grand Canyon Education Inc's interest coverage ratio has shown a generally positive trend over the years, reflecting the company's ability to meet its interest payments using its operating income. From March 31, 2020, to December 31, 2022, the interest coverage ratio steadily increased, indicating a strong ability to cover interest expenses. However, there was a significant anomaly in the data on December 31, 2022, where the interest coverage ratio skyrocketed to $120,060.50, which appears to be an outlier or a data reporting error, as it is unusually high compared to previous periods.

Following this anomaly, the interest coverage ratio fluctuated in the subsequent quarters but generally stayed at healthy levels. There was a notable decrease in the ratio in March 31, 2023, and June 30, 2023, possibly indicating a temporary strain on the company's ability to cover interest expenses. However, the ratio improved in the following periods, demonstrating a recovery in the company's interest coverage.

Overall, Grand Canyon Education Inc's interest coverage ratio has displayed resilience and an ability to manage its interest obligations effectively, with occasional fluctuations that are common in financial analysis. It is important for stakeholders to consider normalizing the data to account for anomalies or errors that may impact the interpretation of the company's financial health.