Adtalem Global Education Inc (ATGE)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,788,290	1,584,650	1,450,830	1,387,120	899,248
Receivables	US$ in thousands	146,189	126,833	102,749	81,635	43,041
Receivables turnover		12.23	12.49	14.12	16.99	20.89

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,788,290K ÷ $146,189K
= 12.23

The receivables turnover ratio for Adtalem Global Education Inc exhibits a declining trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio decreased from 20.89 in 2021 to 16.99 in 2022, indicating a reduction in the frequency with which the company collects its accounts receivable during that year. This decline continued into 2023, with the ratio further decreasing to 14.12, and further diminishing in 2024 to 12.49. By June 30, 2025, the receivables turnover ratio reached 12.23.

This downward trend suggests that the company's efficiency in collecting outstanding receivables has diminished over the period, leading to longer average collection periods. A declining receivables turnover ratio may imply potential challenges in either credit policy, collection processes, or shifts in customer payment behavior. It is important for further analysis to consider whether this trend reflects strategic changes, economic factors, or underlying credit risk concerns, as it could have implications for cash flow management and liquidity positioning.