Adtalem Global Education Inc (ATGE)

Number of days of payables

		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
Payables turnover		7.22	7.55	10.70	7.67	6.67	7.32	7.61	8.55	7.93	8.81	9.08	10.36	11.74	9.44	9.05	4.74	11.53	10.44	9.69	9.88
Number of days of payables	days	50.58	48.36	34.12	47.57	54.76	49.83	47.97	42.67	46.05	41.42	40.21	35.23	31.09	38.64	40.32	76.96	31.65	34.97	37.66	36.94

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.22
= 50.58

The analysis of Adtalem Global Education Inc.'s number of days of payables over the observed period indicates considerable fluctuations, reflective of changes in the company's payment practices and possibly its overall liquidity management strategies.

From September 30, 2020, to March 31, 2021, the accounts payable period exhibited a slight decline, decreasing from approximately 36.94 days to 34.97 days. This suggests that the company was paying its suppliers slightly more promptly during this period. However, in the subsequent quarter ending June 30, 2021, there was a notable reduction to 31.65 days, indicating an improvement in payment efficiency or possibly tighter management of cash outflows.

The most significant change appeared during the quarter ending September 30, 2021, when the payable days spiked sharply to 76.96 days. This abrupt increase may imply a strategic delay in payments, resolving liquidity constraints, or changes in the terms negotiated with suppliers. Following that spike, the payable days decreased again to 40.32 days by December 31, 2021, returning to levels more consistent with pre-2021 figures.

Throughout 2022, the payable period stabilized around the 31 to 40-day range, with minor fluctuations, suggesting a relatively steady approach to settling payables. The second and third quarters of 2023 show a gradual increase, reaching 41.42 days and then 46.05 days, respectively, indicating a slight elongation in the payment cycle.

The period extending into 2024 shows a notable upward trend, culminating in 49.83 days at the end of March 2024. This increase might reflect changes in supplier credit terms, strategic cash flow management, or operational adjustments. Interestingly, at the end of 2024, the payable days decreased again to 34.12 days, then increased slightly in the first quarter of 2025 to 48.36 days, and further extended to 50.58 days by June 2025.

Overall, the company's accounts payable period demonstrates periods of both tightening and loosening in payment schedules, with a significant peak in late 2021 that later reverted to more moderate levels. These movements could be indicative of strategic differences in vendor negotiations, liquidity considerations, or operational factors influencing the company's cash flow management.