Strategic Education Inc (STRA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,652,520 | 1,635,790 | 1,713,990 | 1,748,320 | 1,462,710 |
| Debt-to-capital ratio | 0.04 | 0.06 | 0.08 | 0.08 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $61,400K ÷ ($61,400K + $1,652,520K)
= 0.04
The debt-to-capital ratio of Strategic Education Inc has been relatively stable over the past five years, ranging from 0.00 to 0.08. This ratio indicates the proportion of the company's capital structure that is funded by debt. A lower ratio suggests a lower reliance on debt financing, which can indicate a lower financial risk.
In 2023, the debt-to-capital ratio decreased to 0.04 from 0.06 in 2022, indicating a decrease in the proportion of debt to total capital compared to the previous year. This could suggest a decrease in the company's debt levels or an increase in its equity base.
Overall, Strategic Education Inc's debt-to-capital ratio has shown prudent financial management with a relatively low reliance on debt financing, which can be viewed positively by investors and creditors. It is important to consider this ratio in conjunction with other financial metrics to obtain a comprehensive analysis of the company's financial health.
Peer comparison
Dec 31, 2023