Strategic Education Inc (STRA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data, Strategic Education Inc's solvency ratios indicate a strong financial position in terms of its ability to meet its long-term obligations.
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 across all reported periods, indicating that the company has no debt relative to its total assets. This suggests a low risk of financial distress stemming from excessive debt levels.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 throughout the reported periods. This ratio also confirms that the company's capital structure is primarily equity-financed, minimizing the financial risk associated with debt obligations.
3. Debt-to-equity ratio: The debt-to-equity ratio also stays at 0.00 consistently, reinforcing the company's reliance on equity for financing its operations. A low debt-to-equity ratio signifies a conservative approach to leverage, which can enhance financial stability and flexibility.
4. Financial leverage ratio: The financial leverage ratio fluctuates slightly over the periods but generally hovers around 1.30. This ratio measures the extent to which the company relies on debt financing, and the values suggest moderate financial leverage that is manageable and not overly risky.
Overall, the solvency ratios for Strategic Education Inc portray a financially sound company with a strong capital structure, minimal debt burden, and a stable financial leverage position. These ratios signal a healthy balance between debt and equity, indicating the company's ability to weather financial challenges and sustain long-term growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 123.90 | 48.71 | 26.93 | 6.70 | 3.76 | 2.87 | 2.39 | 3.49 | 5.52 | 6.60 | 16.65 | — | — | — | — | — | 206.37 | 102.64 | 61.36 |
The interest coverage ratio of Strategic Education Inc shows a fluctuating trend over the reported periods. In March 2020, the interest coverage stood at a healthy 61.36, indicating the company's ability to cover its interest expenses over 61 times. This ratio improved significantly by June 2020, reaching 102.64, which suggests an even stronger financial position.
The trend continued to show improvement throughout the following quarters, with September 2020 recording an interest coverage ratio of 206.37. However, starting from December 2020, the data indicates that the interest coverage ratio was not reported for several consecutive periods, signifying potential constraints or changes in the company's financial structure during that time.
In the subsequent reported periods, the interest coverage ratio resurfaced but displayed a downward trend. By March 2022, the interest coverage ratio dropped to 16.65, indicating a decreased ability to cover interest expenses. This decline continued through June 2022 and September 2022, with ratios of 6.60 and 5.52, respectively, reflecting a potential strain on the company's financial health.
The interest coverage ratio further decreased to 3.49 by December 2022, indicating a continued challenge in covering interest expenses adequately. However, the ratio slightly improved in the following periods, reaching 6.70 by December 2023. Notably, by March 2024, there was a significant improvement as the interest coverage ratio spiked to 26.93, showcasing a better capacity to handle interest obligations.
In the subsequent quarters, the interest coverage ratio continued to show an upward trend, with June 2024 recording an interest coverage of 48.71 and a considerable increase to 123.90 by September 2024. This strengthening trend suggests an enhanced capability to cover interest expenses, reflecting a positive financial performance for the company.
Overall, the interest coverage ratio for Strategic Education Inc has experienced fluctuations over the reported periods, with periods of significant strengths followed by challenges in covering interest expenses. The recent improvement in the interest coverage ratio indicates a positive shift towards better financial health and sustainability.