Strategic Education Inc (STRA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.23 | 1.29 | 1.32 | 1.35 | 1.31 |
Based on the solvency ratios of Strategic Education Inc, we observed the following trends:
1. Debt-to-assets ratio remained consistently at 0.00 from 2020 to 2024. This indicates that the company has been financing its assets entirely through equity rather than debt, which may suggest lower financial risk.
2. Debt-to-capital ratio also stood at 0.00 across the same period, indicating that the company's capital structure has been predominantly equity-based, further highlighting a lower reliance on debt for funding operations.
3. Debt-to-equity ratio maintained a constant of 0.00 from 2020 to 2024, indicating that there was no debt financing relative to equity in the company during this period. This signifies a strong financial position with minimal financial leverage.
4. Financial leverage ratio showed a decreasing trend from 1.31 in 2020 to 1.23 in 2024. This indicates that the company's reliance on debt to finance its assets decreased over the years, which may suggest improved financial stability and lower risk.
Overall, the solvency ratios of Strategic Education Inc demonstrate a conservative financial strategy with negligible debt levels and a strong emphasis on equity financing, potentially contributing to a stable financial position and lower financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 15.71 | 9.67 | 30.72 | 96.81 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. In the case of Strategic Education Inc, we observe a gradual decline in the interest coverage ratio over the years.
As of December 31, 2020, the interest coverage stood at 96.81, indicating a very strong ability to cover its interest expenses almost 97 times over. However, by December 31, 2024, the company's interest coverage information is not available, which may suggest a data gap or change in reporting.
The significant decrease in the interest coverage ratio from 2020 to 2022, where it dropped to 9.67, signals a weakening ability to cover interest payments. This could potentially raise concerns about the company's financial health and its capacity to service its debt obligations comfortably.
Subsequently, there was an improvement in 2023, as the interest coverage ratio rose to 15.71, suggesting a slight recovery. However, continued monitoring of Strategic Education Inc's financial performance and debt management practices would be advisable to assess any potential risks associated with its interest coverage moving forward.