Perdoceo Education Corp (PRDO)

Perdoceo Education Corp has consistently maintained a strong solvency position as indicated by its solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company has no significant long-term debt relative to its assets, capital, or equity during this period.

Additionally, the Financial leverage ratio has shown some fluctuations but has generally been controlled and conservative, ranging from 1.20 to 1.32 over the same period. A lower financial leverage ratio indicates that the company has a lower level of debt compared to its equity, which can be seen as a positive indicator of financial stability and lower risk.

Overall, the consistently low debt ratios and relatively conservative financial leverage ratio reflect Perdoceo Education Corp's prudent financial management and strong solvency position, indicating a lower risk of financial distress and the ability to meet its long-term obligations comfortably.

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Coverage ratios

Perdoceo Education Corp's interest coverage has shown significant fluctuations over the past five years. The interest coverage ratio, which represents the company's ability to meet its interest obligations, was exceptionally high at 859.56x as of December 31, 2020. This exceptionally high ratio suggests that the company generated a substantial amount of earnings relative to its interest expenses at that time.

However, the interest coverage ratio decreased significantly to 161.97x by December 31, 2021, indicating a potential decline in the company's ability to cover its interest payments with operating income. This decline could be a cause for concern as it may signal increased financial risk and decreased financial flexibility.

Subsequently, there was an improvement in the interest coverage ratio to 331.58x by December 31, 2022, followed by a further increase to 476.55x by December 31, 2023. These improvements suggest that the company's earnings were more than sufficient to cover its interest payments during these periods, demonstrating a potentially stronger financial position.

However, the interest coverage ratio decreased once again to 327.61x by December 31, 2024, indicating a slight decrease in the company's ability to cover its interest obligations compared to the previous year.

Overall, while Perdoceo Education Corp has shown some fluctuations in its interest coverage ratio over the past five years, it is important for stakeholders to closely monitor these ratios to assess the company's financial health and ability to meet its debt obligations.