Laureate Story

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LAUR -- USA Stock  

USD 12.99  0.07  0.54%

Laureate Education is scheduled to announce its earnings today. The next earnings report is expected on the 6th of May 2021. Laureate Education Interest Coverage is relatively stable at the moment as compared to the past year. Laureate Education reported last year Interest Coverage of 1.89. As of 02/25/2021, Long Term Debt to Equity is likely to grow to 0.53, while Average Equity is likely to drop slightly above 2.5 B. Although many aggressive traders are getting into consumer defensive space, Laureate Education may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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How much will Laureate Education owe in March?
Laureate Education currently holds 1.89 B in liabilities with Debt to Equity (D/E) ratio of 1.03, which is about average as compared to similar companies. The entity has a current ratio of 1.4, which is within standard range for the sector.
The company secures a Beta (Market Risk) of 1.2552, which conveys a somewhat significant risk relative to the market. Let's try to break down what Laureate's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Laureate Education will likely underperform. Even though it is essential to pay attention to Laureate Education price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Laureate Education exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Laureate Education has an expected return of -0.0609%. Please be advised to verify Laureate Education potential upside, as well as the relationship between the kurtosis and day typical price to decide if Laureate Education stock performance from the past will be repeated at some point in the near future.
Laureate Education financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Laureate Education, including all of Laureate Education's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Laureate Education assets, the company is considered highly leveraged. Understanding the composition and structure of overall Laureate Education debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Laureate Total Liabilities

Laureate Education liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Laureate Education has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Laureate Education balance sheet include debt obligations and money owed to different Laureate Education vendors, workers, and loan providers. Below is the chart of Laureate short long-term liabilities accounts currently reported on its balance sheet.
You can use Laureate Education financial leverage analysis tool to get a better grip on understanding its financial position

How important is Laureate Education's Liquidity

Laureate Education financial leverage refers to using borrowed capital as a funding source to finance Laureate Education ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Laureate Education financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Laureate Education's total debt and its cash.

Detailed Outlook On Laureate Education

The firm reported the previous year's revenue of 3.13 B. Net Income was 154.22 M with profit before overhead, payroll, taxes, and interest of 999.15 M.

Liabilities Breakdown

1.1 B
Current Liabilities
3.1 B
Long-Term Liabilities
Total Liabilities4.14 Billion
Current Liabilities1.08 Billion
Long-Term Liabilities3.06 Billion
Tax Liabilities127.12 Million

Time to opt out of Laureate Education is now

Downside deviation is down to 1.46. It may connote a possible volatility fall. Laureate Education has relatively low volatility with skewness of 0.38 and kurtosis of 0.92. However, we advise all investors to independently investigate Laureate Education to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Laureate Education's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Laureate Education's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Laureate Education

While some firms in the education & training services industry are either recovering or due for a correction, Laureate may not be as strong as the others in terms of longer-term growth potentials. While some retail investors may not share our view, we believe it may be a good time to increase your existing holdings in Laureate. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Laureate Education.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Laureate Education. Please refer to our Terms of Use for any information regarding our disclosure principles.

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