Strategic Education Inc (STRA)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	61,400	61,247	101,309	101,344	101,396	141,234	141,437	141,743	141,630	141,593	141,748	141,798	141,823	—	—	—	0	—	—	—
Total stockholders’ equity	US$ in thousands	1,652,520	1,594,750	1,598,610	1,610,430	1,635,790	1,598,480	1,651,920	1,724,310	1,713,990	1,695,060	1,733,180	1,735,920	1,748,320	1,705,060	1,484,550	1,459,150	1,462,710	1,444,660	1,437,880	1,423,440
Debt-to-capital ratio		0.04	0.04	0.06	0.06	0.06	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.00	0.00	0.00	0.00	0.00	0.00	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 remained relatively stable over the past eight quarters, ranging from 0.04 to 0.08. This indicates that the company has maintained a conservative approach to debt management, with a significant portion of its capital structure funded by equity rather than debt. Consistently low debt-to-capital ratios suggest that the company has a lower level of financial risk and may be less susceptible to financial distress or liquidity concerns. The slight increase in the ratio from Q1 2023 to Q2 2023 could indicate a marginal increase in the company's debt relative to its total capital during that period. Overall, the trend in Strategic Education Inc's debt-to-capital ratio indicates a financially prudent approach to capital structure management.