Adtalem Global Education Inc (ATGE)

Payables turnover

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
Cost of revenue (ttm) US$ in thousands 757,852 744,954 715,975 701,408 684,031 675,295 670,225 657,459 648,486 646,047 646,254 667,371 670,836 635,192 592,242 538,645 489,233 479,648 475,283 475,718
Payables US$ in thousands 105,017 98,709 66,920 91,421 102,626 92,198 88,093 76,866 81,812 73,307 71,189 64,407 57,140 67,252 65,422 113,577 42,421 45,958 49,035 48,148
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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $757,852K ÷ $105,017K
= 7.22

The payables turnover ratio of Adtalem Global Education Inc exhibits notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio stood at 9.88 times as of September 30, 2020, and experienced slight decreases and increases through the subsequent quarters, reaching a peak of 11.74 times on June 30, 2022. This indicates a relatively efficient management of accounts payable during this period, reflecting either prompt payments to suppliers or a shorter payables cycle.

However, a significant decline is observed in the latter half of 2021, with the ratio dropping sharply to 4.74 as of September 30, 2021. This sharp decrease could suggest extended payment periods to suppliers or a change in payment policies, possibly driven by liquidity considerations or strategic supplier negotiations.

Following this low point, the ratio gradually recovered, reaching approximately 10.70 on December 31, 2024, which is comparable to the earlier peaks. This rebound indicates a return to more efficient payable management, aligning with a shorter cycle similar to previous periods.

Throughout 2024 and into early 2025, the ratio shows some volatility, with values oscillating around the 7.5 to 8.55 range. The latest data point for June 30, 2025, records a ratio of 7.22, implying a trend toward somewhat extended payables compared to the peak periods but still reflecting a relatively stable payables management strategy.

In summary, the company's payables turnover ratio has demonstrated periods of strong efficiency interspersed with episodes of extended payment cycles. The noticeable dip in late 2021 may warrant further investigation to understand the underlying causes—be it liquidity management, supply chain conditions, or strategic payment decisions—while the recovery suggests an ongoing adjustment to maintain payable management efficiency over time.