Strategic Education Inc (STRA)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	61,400	101,396	141,630	141,823	0
Total assets	US$ in thousands	2,125,210	2,161,750	2,305,880	2,295,810	1,789,410
Debt-to-assets ratio		0.03	0.05	0.06	0.06	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $61,400K ÷ $2,125,210K
= 0.03

The debt-to-assets ratio of Strategic Education Inc has shown a declining trend over the past five years. As of December 31, 2023, the company's debt-to-assets ratio stands at 0.03, indicating that only 3% of its total assets are financed by debt. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments.

The decrease in the debt-to-assets ratio from 0.05 in 2022 to 0.03 in 2023 reflects a positive financial position, as the company is reducing its reliance on debt to support its asset base. This lower ratio may signify a lower financial risk for the company, as it has a smaller proportion of debt relative to its total assets.

Moreover, the company's debt-to-assets ratio has consistently remained relatively low over the years, with the exception of 2021 when it slightly increased to 0.06. This stability indicates that Strategic Education Inc has been able to maintain a healthy balance between debt and assets, ensuring financial stability and effective management of its capital structure.

Overall, the decreasing trend in the debt-to-assets ratio, along with the consistently low levels observed, suggests that Strategic Education Inc has a conservative approach to debt management and is well-positioned to meet its financial obligations while maintaining a strong financial position.