Perdoceo Education Corp (PRDO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.29 | 1.19 | 1.20 | 1.21 | 1.20 | 1.24 | 1.28 | 1.27 | 1.32 | 1.27 | 1.24 | 1.24 | 1.30 | 1.30 | 1.28 | 1.28 | 1.30 | 1.31 | 1.37 | 1.36 |
Perdoceo Education Corp's solvency ratios indicate a consistently strong financial position in terms of debt management and leverage. The debt-to-assets ratio remained at 0.00 across all periods, signifying that the company's total assets completely financed its operations without relying on external debt.
Similarly, the debt-to-capital ratio and debt-to-equity ratio also remained at 0.00 consistently. This suggests that Perdoceo Education Corp has minimal debt relative to both total capital and shareholder equity, indicating a low level of financial risk and strong solvency position.
The financial leverage ratio, which measures the extent of a company's financial leverage, showed a declining trend over the periods analyzed. Starting at 1.36 in March 2020, the ratio decreased to 1.19 by September 30, 2024. This downward trend indicates that the company is reducing its reliance on debt financing, which can enhance its financial stability and flexibility.
Overall, based on these solvency ratios, Perdoceo Education Corp appears to have a conservative approach to debt management and a solid financial foundation, which bodes well for its long-term sustainability and ability to weather economic uncertainties.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 310.48 | 261.53 | 249.13 | 258.45 | 402.08 | 426.64 | 379.25 | 338.89 | 331.58 | 418.19 | 184.42 | 152.70 | 148.72 | 151.06 | 308.42 | 630.27 | 870.73 | 846.04 | 837.01 | 631.16 |
Perdoceo Education Corp's interest coverage ratio measures its ability to cover interest payments on its outstanding debt with its operating income. The trend of the interest coverage ratio over the past few years shows variability in the company's ability to cover its interest expenses.
From March 31, 2020, to June 30, 2021, the interest coverage ratio was consistently high, indicating that Perdoceo Education Corp was comfortably able to meet its interest obligations with its operating income. However, from June 30, 2021, to December 31, 2023, the interest coverage ratio decreased significantly, reaching its lowest point in September 30, 2021 and December 31, 2021. This suggests that the company may have faced challenges in covering its interest payments with its operating earnings during this period.
Subsequently, from March 31, 2022, to December 31, 2024, the interest coverage ratio showed some recovery and stability, although it did not reach the earlier highs seen in the initial period. The increase in the interest coverage ratio from 2022 onwards indicates an improvement in the company's ability to cover its interest expenses, but it remains lower than the levels seen in the earlier period.
Overall, the fluctuation in Perdoceo Education Corp's interest coverage ratio highlights the importance of monitoring the company's operational performance and financial health to ensure its ability to meet its debt obligations in the long term.