Adtalem Global Education (Adtalem Global Education) Interest Coverage

: 4.61 (As of Dec. 2023)

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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 by its Interest Expense. Adtalem Global Education's Operating Income for the three months ended in Dec. 2023 was $66 Mil. Adtalem Global Education's Interest Expense for the three months ended in Dec. 2023 was $-14 Mil. Adtalem Global Education's interest coverage for the quarter that ended in Dec. 2023 was 4.61. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Adtalem Global Education's Interest Coverage or its related term are showing as below:

ATGE' s Interest Coverage Range Over the Past 10 Years
Min: 1.5 Med: 11.98 Max: 58.39
Current: 3.54

ATGE's Interest Coverage is ranked worse than
75.82% of 182 companies
in the Education industry
Industry Median: 14.85 vs ATGE: 3.54

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

Adtalem Global Education Interest Coverage Historical Data

The historical data trend for Adtalem Global Education's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Adtalem Global Education Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

Get a 7-Day Free Trial

9.18

6.61

3.60

1.50

3.43

Adtalem Global Education Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.14	4.06	3.11	2.40	4.61

Competitive Comparison

For the Education & Training Services subindustry, Adtalem Global Education's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Adtalem Global Education Interest Coverage Distribution

For the Education industry and Consumer Defensive sector, Adtalem Global Education's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Adtalem Global Education's Interest Coverage falls into.

Adtalem Global Education Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

Adtalem Global Education's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Adtalem Global Education's Interest Expense was $-63 Mil. Its Operating Income was $216 Mil. And its Long-Term Debt & Capital Lease Obligation was $859 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	216.331	/	-63.156
	=	3.43

Adtalem Global Education's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Adtalem Global Education's Interest Expense was $-14 Mil. Its Operating Income was $66 Mil. And its Long-Term Debt & Capital Lease Obligation was $865 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	65.589	/	-14.215
	=	4.61

The higher the ratio, the stronger the company's Financial Strength is.

Adtalem Global Education (NYSE:ATGE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Adtalem Global Education Interest Coverage Related Terms

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Adtalem Global Education (Adtalem Global Education) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Adtalem Global Education Inc (NYSE:ATGE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DVY:Germany

Address

500 West Monroe Street, Suite 28, Chicago, IL, USA, 60661

Website

https://www.adtalem.com

Adtalem Global Education Inc is an American for-profit educational company that operates various university and educational programs. The company runs eight colleges and universities that specialize in business, medicine, education, and nursing degree programs. DeVry Education Group has over 90 campuses as well as online courses that offer associate, bachelor, and postgraduate degrees. Enrollment in its business colleges represents almost half of overall student enrollment, followed by technology and healthcare. The company derives the majority of its revenue from student enrollment fees using federal financial aid programs such as Pell Fund grants.

Executives

Maurice Herrera	officer: Chief Marketing Officer	500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Blake Simpson	officer: SVP, Chief Comms Officer	500 W. MONROE, SUITE 1300, CHICAGO IL 60661
Lisa W Wardell	director	5900 RYLAND DRIVE, BETHESDA MD 20817
Manjunath Gangadharan	officer: VP, Chief Accounting Officer	600 WEST CHICAGO AVE., STE 400, CHICAGO IL 60654
William W Burke	director	3868 MOCKINGBIRD LN, DALLAS TX 75205
Lyle Logan	director	ONE TOWER LANE, OAKBROOK TERRACE IL 60181
Evan Trent	officer: SVP, Chief Strat. & Transform	500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
William V Krehbiel	director	500 W. MONROE, CHICAGO IL 60661
James Raymond Bartholomew	officer: President, DeVry University	2449 MARCY AVENUE, EVANSTON IL 60201
Michael Betz	officer: President, Walden University	500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Cheryl James	officer: SVP, CHRO	500 W. MONROE, 28TH FLOOR, CHICAGO IL 60661
Sharon O'keefe	director	C/O VOCERA COMMUNICATIONS, INC., 525 RACE STREET, SAN JOSE CA 95126
Michael W Malafronte	director	INTERNATIONAL VALUE ADVISERS, LLC, 717 FIFTH AVE, 10TH FLOOR, NEW YORK NY 10022
Georgette D. Kiser	director	1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Kenneth J Phelan	director	HUNTINGTON BANCSHARES INCORPORATED, 41 S. HIGH STREET, COLUMBUS OH 43215