Adtalem Global Education Inc (ATGE)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	—	—	0.78	—	—
Days of sales outstanding (DSO)	days	29.84	29.21	25.85	21.48	17.47
Number of days of payables	days	53.28	53.62	46.05	31.61	31.65
Cash conversion cycle	days	-23.44	-24.41	-19.42	-10.13	-14.18

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.84 – 53.28
= -23.44

The cash conversion cycle (CCC) for Adtalem Global Education Inc. demonstrates a consistent negative trend over the period from June 30, 2021, to June 30, 2025, indicating that the company generally operates with a cash conversion cycle that is integrated into its funding or operational cycle. Specifically, the CCC was recorded as -14.18 days on June 30, 2021, which improved to -10.13 days by June 30, 2022. A further decline is observed, reaching -19.42 days on June 30, 2023, and continuing to decrease to -24.41 days on June 30, 2024. Slightly less negative, the cycle is estimated at -23.44 days as of June 30, 2025.

A negative cash conversion cycle suggests that Adtalem Global Education Inc. typically receives cash from its students or clients before it is required to pay its suppliers or other current liabilities, creating a net inflow of cash during their operating cycle. The increasing negativity in the CCC over recent years indicates an improvement in the company's operational efficiency concerning cash management. This more extended negative duration implies that the company is able to collect receivables more quickly relative to its payable deferrals, or it is delaying payments without impacting service quality, thus reducing the need for external short-term financing.

Overall, the trend reflects a strengthening working capital management strategy, with the company increasingly leveraging its receivables and payables to maintain a favorable cash position, enhancing liquidity and reducing reliance on external financing. This pattern is indicative of efficient cash flow practices within the organization's operational cycle.