Adtalem Global Education Inc (ATGE)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,372,522	1,388,576	1,356,608	1,329,091	1,319,005	1,317,260	1,344,136	1,394,757	1,398,402	1,341,787	1,224,353	1,091,673	967,457	944,023	927,453	919,629	930,565	913,321	958,018	980,303
Payables	US$ in thousands	102,626	92,198	88,093	76,866	81,812	73,307	71,189	64,407	57,140	67,252	65,422	99,691	42,421	34,446	39,255	48,148	46,484	33,932	31,457	44,674
Payables turnover		13.37	15.06	15.40	17.29	16.12	17.97	18.88	21.66	24.47	19.95	18.71	10.95	22.81	27.41	23.63	19.10	20.02	26.92	30.45	21.94

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,372,522K ÷ $102,626K
= 13.37

The payables turnover ratio for Adtalem Global Education Inc has shown a fluctuating trend over the past several quarters, ranging from a low of 10.95 to a high of 30.45. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times during a period the company pays off its suppliers.

A higher payables turnover ratio generally suggests that the company is managing its payables effectively by paying them off quickly. Conversely, a lower ratio may indicate that the company is taking longer to pay off its suppliers, potentially signaling liquidity issues or strained relationships with suppliers.

In the latest quarter ending June 30, 2024, the payables turnover ratio was 13.37, which was lower compared to the prior quarter at 15.06. This could imply that the company took slightly longer to pay off its suppliers in the most recent period. However, it's essential to consider industry standards and benchmarks when evaluating the efficiency of accounts payable management.

Overall, monitoring the payables turnover ratio over time can provide insights into the company's liquidity position, operational efficiency, and vendor management practices.