Four Seasons Education Cayman (FEDU) - Long-Term Debt to Capital Ratio

The dynamics of the long-term financial dependency ratio for Four Seasons Education (FEDU) demonstrate the impact of transitioning to the B2B sector and intellectual camps to mitigate regulatory pressure, while 0.18 captures the current value of the indicator. Shifting the model toward non-academic courses dilutes competitive advantages and reduces profitability; however, Beijing's stringent policies regarding private tutoring create risks of center closures.

This ratio compares liabilities with a maturity of over one year to the amount of equity. It determines the degree of financial autonomy and the balance sheet structure's resilience to rising interest rates. For Four Seasons Education (FEDU), this parameter is critical when seeking a new niche following the regulatory crisis in China. A shrinking customer base limits the ability to service loans. The trend of long-term loans relative to equity reflects the business's current margin of safety.