Strategic Education Inc (STRA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,125,210 | 2,161,750 | 2,305,880 | 2,295,810 | 1,789,410 |
| Total stockholders’ equity | US$ in thousands | 1,652,520 | 1,635,790 | 1,713,990 | 1,748,320 | 1,462,710 |
| Financial leverage ratio | 1.29 | 1.32 | 1.35 | 1.31 | 1.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,125,210K ÷ $1,652,520K
= 1.29
The financial leverage ratio for Strategic Education Inc has shown a slight decreasing trend over the past five years. The ratio decreased from 1.22 in 2019 to 1.29 in 2023. This indicates that the company's reliance on debt to finance its operations and investments has decreased slightly over the period.
A financial leverage ratio of 1.29 in 2023 suggests that for every $1 of equity, the company has $1.29 of total assets, of which $0.29 are financed through debt. This indicates a moderate level of leverage in the company's capital structure.
Overall, the downward trend in the financial leverage ratio may suggest that the company is becoming less reliant on debt financing over time, which could be a positive sign for its financial stability and risk management. However, further analysis and consideration of other financial metrics are needed to fully assess the company's financial leverage position.
Peer comparison
Dec 31, 2023