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.