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American Public Education (American Public Education) Financial Strength : 6 (As of Dec. 2023)


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What is American Public Education Financial Strength?

American Public Education has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

American Public Education's Interest Coverage for the quarter that ended in Dec. 2023 was 23.89. American Public Education's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.33. As of today, American Public Education's Altman Z-Score is 1.52.


Competitive Comparison of American Public Education's Financial Strength

For the Education & Training Services subindustry, American Public Education's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Public Education's Financial Strength Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, American Public Education's Financial Strength distribution charts can be found below:

* The bar in red indicates where American Public Education's Financial Strength falls into.



American Public Education Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

American Public Education's Interest Expense for the months ended in Dec. 2023 was $-0.8 Mil. Its Operating Income for the months ended in Dec. 2023 was $18.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $191.4 Mil.

American Public Education's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*18.894/-0.791
=23.89

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

American Public Education's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(13.309 + 191.421) / 611.216
=0.33

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

American Public Education has a Z-score of 1.52, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.52 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


American Public Education  (NAS:APEI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

American Public Education has the Financial Strength Rank of 6.


American Public Education Financial Strength Related Terms

Thank you for viewing the detailed overview of American Public Education's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


American Public Education (American Public Education) Business Description

Traded in Other Exchanges
N/A
Address
111 West Congress Street, Charles Town, WV, USA, 25414
American Public Education Inc provides online and on-campus postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public Education segment which is the key revenue generator; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
Executives
Barbara Kurshan director C/O AMERICAN PUBLIC EDUCATION, 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Craig S Macgibbon officer: EVP, Chief Information Officer C/O UIL HOLDINGS CORPORATION, 157 CHURCH STREET, NEW HAVEN CT 06506
Thomas Beckett officer: SVP, General Counsel 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Paula R Singer officer: Acting President, Rasmussen C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
325 Master Fund Lp other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Daniel M. Friedberg other: See Footnotes C/O SAGARD CAPITAL, 325 GREENWICH AVENUE, GREENWICH CT 06830
325 Capital Llc other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Michael David Braner director, other: See Footnotes 200 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10016
Anil K Shrivastava other: See Footnotes 200 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10016
325 Capital Gp, Llc other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Robinson William G Jr director 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Granetta B. Blevins director C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Harry T Wilkins officer: EVP, Strategy, Growth & Innov. 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Anna M. Fabrega director C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Eric C. Andersen director C/O AMERICAN PUBLIC EDUCATION, INC., 111 W. CONGRESS STREET, CHARLES TOWN WV 25414