Adtalem Global Education Inc (ATGE)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — 426.20 668.56 951.66 730.19 601.67 — — — — — — — — — — — — —
Receivables turnover 12.49 10.92 11.19 9.92 14.12 12.78 14.49 12.97 16.98 12.99 12.01 5.99 13.34 12.16 10.81 10.21 12.09 10.70 11.18 8.88
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
Working capital turnover — — — — 29.55 15.14 27.93 18.28 10.38 2.57 9.86 13.28 0.82 0.85 2.90 2.83 3.03 5.29 12.17 23.64

Adtalem Global Education Inc's activity ratios highlight the efficiency of its operations in managing inventory, receivables, payables, and working capital turnover.

- Inventory turnover improved significantly from December 2023 to June 2023, indicating a rapid conversion of inventory into sales during that period. However, no data is available for the most recent quarter, making it challenging to assess the current trend.

- Receivables turnover has shown some fluctuations over the quarters but generally remains at a reasonable level, suggesting that the company efficiently collects its accounts receivable. The highest turnover was recorded in December 2023.

- Payables turnover has also fluctuated over the quarters but demonstrates a consistent ability to pay off its suppliers efficiently. The company took longer to pay suppliers from December 2019 to March 2020 but improved significantly thereafter.

- Working capital turnover, while not available for the most recent quarters, shows varying trends in efficient utilization of working capital to generate sales. The ratio improved from December 2019 to March 2021 but then decreased until March 2022 before showing improvement until June 2022.

Overall, the company has been efficient in managing its inventory, receivables, and payables turnover, indicating good operational efficiency. However, the absence of data for the most recent quarter limits the complete assessment of the current situation.

Average number of days

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
Days of inventory on hand (DOH) days — — 0.86 0.55 0.38 0.50 0.61 — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 29.21 33.41 32.62 36.80 25.85 28.57 25.19 28.14 21.50 28.10 30.39 60.97 27.37 30.01 33.76 35.75 30.20 34.11 32.66 41.12
Number of days of payables days 27.29 24.24 23.70 21.11 22.64 20.31 19.33 16.85 14.91 18.29 19.50 33.33 16.00 13.32 15.45 19.11 18.23 13.56 11.98 16.63

Adtalem Global Education Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a fluctuating pattern over the periods provided, ranging from 0.38 days to 0.86 days. Lower DOH values indicate a faster turnover of inventory, suggesting that Adtalem Global Education Inc effectively manages its inventory levels and avoids excessive stockpiling.

2. Days of Sales Outstanding (DSO): DSO ranged from 21.50 days to 60.97 days, indicating the average number of days it takes for the company to collect its receivables. Lower DSO values are favorable as they reflect a faster collection of payments from customers. The decreasing trend in DSO over recent periods suggests an improvement in the company's credit and collection policies.

3. Number of Days of Payables: Adtalem Global Education Inc's payables turnover, measured by the number of days of payables, ranged from 13.32 days to 33.33 days. A lower number of days of payables indicates that the company pays its suppliers more quickly. The decreasing trend in payables turnover over the periods suggests a change in payment terms or a focus on managing cash flow efficiently.

Overall, the company's activity ratios indicate improvements in managing inventory levels efficiently, collecting receivables more promptly, and potentially maintaining good relationships with suppliers by managing payables effectively.

Long-term

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
Fixed asset turnover 6.38 6.42 6.36 5.94 5.93 5.87 5.23 5.15 4.78 4.24 3.69 3.16 3.20 3.38 3.53 3.50 3.68 3.69 3.70 3.67
Total asset turnover 0.58 0.57 0.55 0.52 0.52 0.50 0.51 0.48 0.46 0.35 0.30 0.26 0.29 0.31 0.43 0.44 0.47 0.43 0.44 0.42

The fixed asset turnover ratio for Adtalem Global Education Inc has shown a generally increasing trend over the analyzed periods, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests that Adtalem has been efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown an increasing trend, albeit with more fluctuations compared to the fixed asset turnover. This ratio reflects the company's ability to generate sales in relation to its total assets. The increasing trend suggests that Adtalem has been improving its overall efficiency in generating revenue from its total asset base.

Overall, the efficiency ratios indicate that Adtalem Global Education Inc has been effectively managing its assets to generate sales, with both fixed asset turnover and total asset turnover showing positive trends over the analyzed periods.