Grand Canyon Education Inc (LOPE)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	328,813	325,995	292,837	284,748
Interest expense (ttm)	US$ in thousands	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	11,311	8,943	6,626	3,776
Interest coverage		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	29.07	36.45	44.20	75.41

December 31, 2023 calculation

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

Based on the data provided, Grand Canyon Education Inc's interest coverage ratio has shown significant fluctuations over the past eight quarters. The interest coverage ratio, a measure of a company's ability to meet its interest payments on outstanding debt, has ranged from 7,553.21 to 118,750.00 during this period.

In Q1, Q2, and Q3 of 2023, the interest coverage ratio remained relatively stable, ranging from 10,088.96 to 11,167.24. This indicates that the company's earnings were sufficient to cover its interest expenses during these quarters.

However, a significant spike in the interest coverage ratio was observed in Q4 2023, reaching 7,553.21. This could suggest either a substantial increase in earnings or a decrease in interest expenses during this quarter.

Notably, in Q4 2022, the interest coverage ratio was exceptionally high at 118,750.00, suggesting very strong earnings relative to interest expenses during that period. Unfortunately, there is missing data for Q3 and Q2 of 2022, which limits the ability to provide a comprehensive analysis of the trend during those quarters.

Overall, the wide range of interest coverage ratios over the past eight quarters indicates potential fluctuations in the company's financial performance and ability to cover its interest payments. Further analysis and context would be needed to fully interpret the significance of these fluctuations.