Perdoceo Education Corp (PRDO)

Perdoceo Education Corporation's solvency ratios reflect a consistently low level of debt relative to its assets, capital, and equity over the past five years, as evidenced by a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all at 0.00 for each year. This indicates that the company has not relied heavily on debt financing to fund its operations and investments during this period.

However, the financial leverage ratio has shown some variability, decreasing from 1.39 in 2019 to 1.20 in 2023. This ratio measures the extent to which the company is using debt to finance its assets, with a lower ratio indicating less reliance on debt. The decreasing trend in this ratio suggests that the company has been gradually reducing its financial leverage and becoming less dependent on debt for its capital structure.

Overall, Perdoceo Education Corporation's solvency ratios depict a financially stable and conservative approach to managing its debt levels, with a focus on maintaining a healthy balance between debt and equity to support its operations and growth strategies.

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Coverage ratios

As the interest coverage ratio for Perdoceo Education Corporation is not provided in the table for the years 2019 to 2023, it is not possible to evaluate the company's ability to meet its interest obligations based on this data alone. The interest coverage ratio is a financial metric used to assess a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing the company's earnings before interest and taxes (EBIT) by its interest expenses.

Without access to the interest coverage ratio data for these years, it is recommended to obtain additional information or financial statements from Perdoceo Education Corporation to conduct a more thorough analysis of the company's financial health and its ability to cover its interest expenses.