Adtalem Global Education Inc (ATGE)

Fixed asset turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,788,290	1,584,650	1,450,830	1,387,120	899,248
Property, plant and equipment	US$ in thousands	—	—	258,522	289,926	466,180
Fixed asset turnover		—	—	5.61	4.78	1.93

June 30, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,788,290K ÷ $—K
= —

The fixed asset turnover ratio for Adtalem Global Education Inc. demonstrates a notable upward trend over the period from June 30, 2021, to June 30, 2023. Specifically, the ratio increased from 1.93 in 2021 to 4.78 in 2022, reflecting a significant improvement in the company's efficiency in utilizing its fixed assets to generate revenue. This upward movement continued into 2023, reaching a ratio of 5.61, which indicates an even higher level of asset productivity relative to revenue generation.

The substantial increase between 2021 and 2022 suggests that Adtalem successfully optimized its asset base or increased revenues without a proportional rise in fixed assets, thereby enhancing its operational efficiency. The further increase in 2023 reinforces this trend, possibly reflecting effective asset management, disposition of underperforming assets, or revenue growth driven by higher enrollment, product offerings, or market expansion.

The absence of data for 2024 and 2025 precludes an assessment of whether this trend has persisted or plateaued beyond 2023. Nonetheless, the period observed indicates a strategic improvement in fixed asset utilization, aligning with potential operational efficiencies and revenue growth strategies during these years.