Strategic Education Inc (STRA)

The solvency ratios of Strategic Education Inc indicate the company's ability to meet its long-term financial obligations.

Debt-to-assets ratio: This ratio has been consistently low over the past five years, ranging from 0.00 in 2019 to 0.06 in 2021 and 2020, and decreasing to 0.03 in 2023. This suggests that only a small portion of the company's assets is financed through debt, indicating a low level of financial risk.

Debt-to-capital ratio: The trend in this ratio is also relatively stable, showing a slight increase from 0.00 in 2019 to 0.08 in 2021 and 2022, followed by a decrease to 0.06 in 2023. A low debt-to-capital ratio implies that the company relies more on equity financing than debt, which can enhance financial stability.

Debt-to-equity ratio: Similarly, the debt-to-equity ratio has followed a similar pattern to the debt-to-capital ratio, with a low and consistent level of debt compared to equity. The ratio remains relatively low at 0.04 in 2023, indicating a conservative capital structure strategy.

Financial leverage ratio: The financial leverage ratio measures the company's level of financial leverage or the proportion of debt in its capital structure. The ratio has fluctuated over the years but has generally increased from 1.22 in 2019 to 1.35 in 2021, before slightly decreasing to 1.29 in 2023. A higher financial leverage ratio implies higher financial risk but can also indicate potential for higher returns on equity.

Overall, Strategic Education Inc's solvency ratios demonstrate a prudent approach to debt management, with the company maintaining low levels of debt in relation to its assets, capital, and equity. The financial leverage ratio suggests a moderate level of leverage that has been managed effectively over the years.

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Coverage ratios

I'm sorry, but without the specific values for the interest coverage ratio provided in the table for each year, I am unable to conduct a detailed analysis of Strategic Education Inc's interest coverage over time. Please provide the numerical data so that I can offer a comprehensive assessment of the company's ability to meet its interest payments with its earnings.