Adtalem Global Education Inc (ATGE)

Working capital 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
Revenue (ttm)	US$ in thousands	1,584,652	1,539,386	1,495,810	1,465,402	1,450,826	1,447,416	1,442,615	1,450,979	1,385,780	1,248,015	1,113,947	977,145	906,901	943,164	984,438	1,016,214	1,052,001	1,056,512	1,043,728	1,031,517
Total current assets	US$ in thousands	418,085	391,817	381,109	475,031	480,297	533,548	423,116	569,922	557,104	1,012,460	610,507	709,792	1,514,950	1,497,520	680,560	768,473	692,766	544,266	389,929	456,113
Total current liabilities	US$ in thousands	487,657	509,110	398,573	495,635	431,203	437,920	371,462	490,549	423,647	526,372	497,475	636,230	408,807	382,452	340,856	409,937	345,983	344,686	304,188	412,475
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

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,584,652K ÷ ($418,085K – $487,657K)
= —

The working capital turnover ratio for Adtalem Global Education Inc has fluctuated over the past few quarters. The ratio is calculated by dividing net sales by average working capital, where a higher ratio indicates more efficient use of working capital.

In the most recent quarter ending June 30, 2023, the working capital turnover ratio was 29.55, indicating a significant increase in efficiency compared to the prior quarter. This suggests that the company managed its working capital more effectively to generate higher sales during that period.

On the other hand, in the quarter ending March 31, 2022, the working capital turnover ratio was at its lowest at 0.82, indicating a significant inefficiency in utilizing working capital to generate sales. This could be a cause for concern as it shows a potential liquidity issue or poor management of working capital during that period.

Overall, Adtalem Global Education Inc's working capital turnover ratio has shown variability, with some quarters demonstrating efficient utilization of working capital to drive sales, while others indicating challenges in managing working capital effectively. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial health.