Arco Platform (Arco Platform) Debt-to-Equity : 0.72 (As of Jun. 2023)

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What is Arco Platform Debt-to-Equity?

Arco Platform's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $27.5 Mil. Arco Platform's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $375.9 Mil. Arco Platform's Total Stockholders Equity for the quarter that ended in Jun. 2023 was $562.9 Mil. Arco Platform's debt to equity for the quarter that ended in Jun. 2023 was 0.72.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Arco Platform's Debt-to-Equity or its related term are showing as below:

ARCE' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.02 Med: 0.2 Max: 1.06
Current: 0.72

During the past 8 years, the highest Debt-to-Equity Ratio of Arco Platform was 1.06. The lowest was 0.02. And the median was 0.20.

ARCE's Debt-to-Equity is not ranked
in the Education industry.
Industry Median: 0.34 vs ARCE: 0.72

Arco Platform Debt-to-Equity Historical Data

The historical data trend for Arco Platform's Debt-to-Equity can be seen below:

* 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.

* Premium members only.

Arco Platform Debt-to-Equity Chart

Arco Platform Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-Equity

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0.08

0.16

1.00

1.06

Arco Platform Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Debt-to-Equity	Get a 7-Day Free Trial															0.88	1.04	1.06	0.71	0.72

Competitive Comparison of Arco Platform's Debt-to-Equity

For the Education & Training Services subindustry, Arco Platform's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.

Arco Platform's Debt-to-Equity Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Arco Platform's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Arco Platform's Debt-to-Equity falls into.

Arco Platform Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Arco Platform's Debt to Equity Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(26.157	+	357.748)	/	361.732
	=	1.06

Arco Platform's Debt to Equity Ratio for the quarter that ended in Jun. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(27.483	+	375.927)	/	562.853
	=	0.72

Arco Platform (NAS:ARCE) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Arco Platform Debt-to-Equity Related Terms

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Arco Platform (Arco Platform) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Arco Platform Ltd (NAS:ARCE) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Augusta 2840, 9th Floor, Suite 91, Consolacao, Sao Paulo, SP, BRA, 01412-100

Website

https://www.arcoeducacao.com.br

Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. Its operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.