Perdoceo Education Corp (PRDO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,007,320 | 957,368 | 847,433 | 721,517 | 599,146 |
| Total stockholders’ equity | US$ in thousands | 841,421 | 725,845 | 650,110 | 555,907 | 431,295 |
| Financial leverage ratio | 1.20 | 1.32 | 1.30 | 1.30 | 1.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,007,320K ÷ $841,421K
= 1.20
The financial leverage ratio of Perdoceo Education Corporation has shown a decreasing trend over the past five years. The ratio decreased from 1.39 in 2019 to 1.20 in 2023. This indicates that the company has been relying less on debt to finance its operations and growth.
A financial leverage ratio of 1.20 in 2023 implies that for every dollar of equity, the company has $1.20 of total assets. This suggests that Perdoceo Education Corporation's debt levels are relatively moderate compared to its equity. A lower financial leverage ratio can indicate a lower risk of financial distress due to debt obligations.
Overall, the decreasing trend in the financial leverage ratio shows that the company has been managing its debt levels effectively and has become less reliant on debt financing over the years. This may reflect a prudent financial strategy aimed at maintaining a healthy balance between debt and equity to support sustainable growth and financial stability.
Peer comparison
Dec 31, 2023