Strategic Education Inc (STRA)
Financial leverage ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
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Total assets | US$ in thousands | 2,049,740 | 2,187,520 | 2,177,520 | 2,155,240 | 2,125,210 | 2,114,100 | 2,142,110 | 2,165,770 | 2,161,750 | 2,215,250 | 2,260,260 | 2,367,880 | 2,305,880 | 2,316,120 | 2,363,310 | 2,369,440 | 2,295,810 | 2,047,320 | 1,791,560 | 1,783,820 |
Total stockholders’ equity | US$ in thousands | 1,662,500 | 1,716,800 | 1,678,100 | 1,642,580 | 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 |
Financial leverage ratio | 1.23 | 1.27 | 1.30 | 1.31 | 1.29 | 1.33 | 1.34 | 1.34 | 1.32 | 1.39 | 1.37 | 1.37 | 1.35 | 1.37 | 1.36 | 1.36 | 1.31 | 1.20 | 1.21 | 1.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,049,740K ÷ $1,662,500K
= 1.23
The financial leverage ratio of Strategic Education Inc has shown some fluctuations over the past few years, ranging from 1.20 to 1.39. The trend indicates a slight increase in leverage from 2020 to 2022, peaking at 1.39 in September 2022, before experiencing a slight decline. The ratio then decreased to 1.27 by September 2024.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to support its operations and growth. A higher ratio implies higher financial risk due to increased debt levels. Conversely, a lower ratio suggests a stronger equity position relative to debt, indicating lower financial risk.
Strategic Education Inc's financial leverage ratio has generally remained within a moderate range, signaling a balance between debt and equity in its capital structure. However, the recent decrease in the ratio from 2022 to 2024 may indicate a shift towards a more conservative financing approach or better management of debt levels. Monitoring the trend of this ratio over time will be crucial in assessing the company's financial risk and capital structure stability.
Peer comparison
Dec 31, 2024