Adtalem Global Education Inc (ATGE)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	1,372,560	1,318,190	1,354,040	967,494	924,820
Payables	US$ in thousands	102,626	81,812	57,140	42,421	46,484
Payables turnover		13.37	16.11	23.70	22.81	19.90

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,372,560K ÷ $102,626K
= 13.37

Adtalem Global Education Inc's payables turnover has been fluctuating in recent years. The payables turnover ratio measures how many times a company pays off its suppliers during a period. A higher payables turnover indicates that the company is paying its suppliers more frequently.

In the last five years, Adtalem's payables turnover has ranged from 13.37 to 23.70 times, with the highest turnover occurring in 2022. This indicates that, on average, Adtalem paid off its suppliers 13.37 times in 2024, compared to 16.11 times in 2023, 23.70 times in 2022, 22.81 times in 2021, and 19.90 times in 2020.

Overall, a decreasing payables turnover may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate cash flow issues. Conversely, an increasing payables turnover may suggest efficient management of payables and cash flow. Investors and analysts may monitor payables turnover trends to assess Adtalem's liquidity management and supplier relations.