Adtalem Global Education Inc (ATGE)

Days of sales outstanding (DSO)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		12.49	10.92	11.19	9.92	14.12	12.78	14.49	12.97	16.98	12.99	12.01	5.99	13.34	12.16	10.81	10.21	12.09	10.70	11.18	8.88
DSO	days	29.21	33.41	32.62	36.80	25.85	28.57	25.19	28.14	21.50	28.10	30.39	60.97	27.37	30.01	33.76	35.75	30.20	34.11	32.66	41.12

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.49
= 29.21

The Days of Sales Outstanding (DSO) ratio measures how long it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting its receivables more quickly, which is generally a positive sign of efficient cash flow management.

Based on the historical data provided for Adtalem Global Education Inc, we observe fluctuations in the DSO ratio over time. From December 2019 to September 2022, there was a general decreasing trend in DSO, indicating that the company was improving its efficiency in collecting payments from customers.

However, in the period ending in June 2023, there was a spike in DSO to 60.97 days, signaling a potential issue with collections efficiency. The company managed to reduce the DSO significantly in the subsequent quarters but experienced a slight increase in DSO in the most recent quarter ending in June 2024.

Overall, Adtalem Global Education Inc's DSO has shown variability over time, suggesting fluctuations in the company's accounts receivable management. It would be important for the company to monitor and manage its DSO closely to ensure timely collection of receivables and maintain healthy cash flow.