Adtalem Global Education Inc (ATGE)

Working capital 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
Total current assets	US$ in thousands	416,190	418,085	478,539	556,039	1,514,950
Total current liabilities	US$ in thousands	507,927	487,657	431,203	423,647	408,807
Working capital turnover		—	—	30.65	10.48	0.81

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,788,290K ÷ ($416,190K – $507,927K)
= —

The working capital turnover ratio for Adtalem Global Education Inc. demonstrated significant variability over the period from June 30, 2021, to June 30, 2023. As of June 30, 2021, the ratio was 0.81, indicating that the company's annual sales or revenues generated approximately 81 cents for every dollar of net working capital employed. This relatively low figure suggests limited efficiency in utilizing working capital to support sales during that period.

By June 30, 2022, the ratio exhibited a substantial increase to 10.48, reflecting a marked improvement in the company's operational efficiency. This rise implies that the company was able to generate significantly higher sales relative to its working capital base, highlighting a period of enhanced asset utilization and possibly improved liquidity management.

The upward trend continued into June 30, 2023, with the ratio reaching 30.65. Such a high value indicates that Adtalem was exceptionally efficient in utilizing its working capital to generate revenues during this period. The ratio's escalation suggests a strategic optimization of working capital or improved operational performance, leading to markedly increased sales per dollar of working capital.

The data points for June 30, 2024, and June 30, 2025, are unavailable, leaving the subsequent trend and sustainability of these efficiency levels unassessed. Overall, the trajectory from 2021 to 2023 reveals a rapid enhancement in working capital turnover, transitioning from low to very high levels, which may reflect strategic operational improvements, changes in revenue recognition policies, or shifts in working capital management practices.