Strategic Education Inc (STRA)
Debt-to-equity 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-equity ratio | 0.04 | 0.06 | 0.08 | 0.08 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $61,400K ÷ $1,652,520K
= 0.04
The debt-to-equity ratio of Strategic Education Inc has exhibited a fluctuating trend over the past five years. In Dec 2019, the company had a debt-to-equity ratio of 0.00, indicating that there was no long-term debt on its balance sheet relative to equity.
However, in the subsequent years, the company started utilizing debt as part of its capital structure. The ratio increased to 0.08 in both Dec 2020 and Dec 2021, suggesting a moderate level of debt in relation to equity.
In Dec 2022, the ratio decreased slightly to 0.06, indicating a reduction in the ratio of debt to equity. Moreover, by Dec 2023, the company significantly lowered its debt-to-equity ratio to 0.04, showcasing a strong decrease in the utilization of debt relative to equity.
Overall, it appears that Strategic Education Inc has managed its debt levels prudently over the years, with a general downward trend in the debt-to-equity ratio, which could signify a strengthening financial position and reduced financial risk.
Peer comparison
Dec 31, 2023