Adtalem Global Education Inc (ATGE)

Working capital turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Revenue (ttm)	US$ in thousands	1,788,290	1,741,091	1,687,694	1,633,207	1,584,652	1,539,386	1,495,810	1,465,870	1,451,584	1,448,174	1,444,715	1,452,611	1,446,379	1,365,522	1,280,553	1,192,466	1,112,380	1,091,735	1,082,568	1,065,629
Total current assets	US$ in thousands	416,190	450,343	407,085	516,914	418,085	387,634	378,099	472,928	478,539	533,034	423,116	569,922	556,039	1,011,000	610,507	709,257	1,514,950	1,497,280	680,447	768,473
Total current liabilities	US$ in thousands	507,927	540,569	384,554	551,309	487,657	509,110	398,573	495,635	431,203	437,920	371,462	490,549	417,527	521,206	497,475	635,695	408,807	382,205	340,743	409,937
Working capital turnover		—	—	74.91	—	—	—	—	—	30.67	15.23	27.97	18.30	10.44	2.79	11.33	16.21	1.01	0.98	3.19	2.97

June 30, 2025 calculation

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

The working capital turnover ratio of Adtalem Global Education Inc. exhibits significant fluctuations over the periods presented, reflecting variability in how effectively the company utilizes its working capital to generate revenue.

Beginning with a ratio of 2.97 as of September 30, 2020, the metric increased modestly to 3.19 by December 31, 2020, indicating a slightly improved efficiency in using working capital to support sales. However, a sharp decline occurred by March 31, 2021, where the ratio dropped to 0.98, suggesting a notable decrease in efficiency or a potential increase in working capital relative to revenue. This low point persisted into June 30, 2021, with a ratio of 1.01.

A dramatic increase was observed subsequently, with the ratio surging to 16.21 on September 30, 2021, and further rising to 11.33 at the end of 2021, indicating a substantial improvement in the efficiency of working capital utilization. This heightened efficiency continued into 2022, peaking at 30.67 as of June 30, 2023, with a notable high of 18.30 on September 30, 2022, and an even higher value of 27.97 on December 31, 2022, before moderating somewhat in March 2023 to 15.23.

Post-March 2023, the ratio remains elevated relative to earlier periods, with values of 30.67 on June 30, 2023, and a substantial increase to 74.91 as of December 31, 2024, indicating a very high level of efficiency or possibly a reduction in working capital investment relative to revenue. Unfortunately, data for subsequent quarters is unavailable, preventing further analysis beyond this point.

Overall, the trend reflects periods of both significant fluctuation and considerable improvement in working capital efficiency, culminating in a notably high ratio at the end of 2024. This pattern suggests strategic changes or operational shifts that impact how the company manages its working capital relative to its revenue generation capacity over time.