Adtalem Global Education Inc (ATGE)

Days of sales outstanding (DSO)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Receivables turnover 12.23 10.68 11.48 9.52 12.49 10.92 11.19 9.92 14.13 12.78 14.51 12.99 17.72 14.21 13.81 7.31 16.36 14.08 11.89 10.71
DSO days 29.84 34.17 31.79 38.33 29.21 33.41 32.62 36.79 25.84 28.55 25.15 28.11 20.60 25.68 26.44 49.96 22.31 25.93 30.70 34.09

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.23
= 29.84

The analysis of Adtalem Global Education Inc.'s days of sales outstanding (DSO) over the specified period reveals a pattern characterized by fluctuations and a general trend of variance around a mid-range level. Initially, at the end of September 2020, the DSO was approximately 34.09 days, indicating that, on average, receivables took about a month to convert into cash. This figure decreased notably by the end of June 2021 to approximately 22.31 days, reflecting an improvement in collection efficiency or potentially a change in credit policies.

However, the subsequent period saw a significant increase in DSO, peaking at approximately 49.96 days at the end of September 2021. This sharp rise suggests a period of elongated receivables collection, which could be indicative of strained credit collection efforts, adverse customer payment behaviors, or industry-specific challenges.

Following this peak, the DSO declined again, stabilizing around the mid-20s to low-30s days through late 2022 and into the first half of 2023. Specifically, by March 2022, the DSO settled at approximately 25.68 days, and then remained relatively steady with minor fluctuations, such as 20.60 days at mid-2022 and 28.11 days at the end of September 2022.

In the latter part of 2023, a slight upward trend is observed, with September 2023 DSO rising to approximately 36.79 days, indicating a modest deterioration in receivables collection efficiency.

Looking into early 2024, the DSO maintained around the low-30 days, with the March 2024 figure at approximately 33.41 days. Subsequently, the DSO experienced some variation, reaching a high of approximately 38.33 days at the end of September 2024 before decreasing again to around 31.79 days at the end of December 2024. The ongoing trend shows some degree of fluctuation, with DSO levels generally oscillating between approximately 30 and 38 days through March 2025, where it stood at around 34.17 days, and June 2025, at 29.84 days.

Overall, the DSO figures demonstrate periods of both improvement and deterioration in receivables collection efficiency. The fluctuations could be influenced by external or internal factors such as seasonal variations, changes in credit policies, economic conditions, or specific industry circumstances affecting customer payment behaviors. The data indicates that while Adtalem has maintained relatively moderate DSO levels overall, periods of increased receivables aging suggest areas for potential process enhancements to better manage cash flow cyclicality and credit risk.