Adtalem Global Education Inc (ATGE)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | 1.73 | 1.10 | 0.78 | 1.02 | 1.26 | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.84 | 34.17 | 31.79 | 38.33 | 29.21 | 33.41 | 32.62 | 36.79 | 25.84 | 28.55 | 25.15 | 28.11 | 20.60 | 25.68 | 26.44 | 49.96 | 22.31 | 25.93 | 30.70 | 34.09 |
| Number of days of payables | days | 50.58 | 48.36 | 34.12 | 47.57 | 54.76 | 49.83 | 47.97 | 42.67 | 46.05 | 41.42 | 40.21 | 35.23 | 31.09 | 38.64 | 40.32 | 76.96 | 31.65 | 34.97 | 37.66 | 36.94 |
| Cash conversion cycle | days | -20.74 | -14.20 | -2.33 | -9.24 | -25.55 | -16.42 | -13.62 | -4.78 | -19.43 | -11.85 | -13.80 | -7.12 | -10.49 | -12.97 | -13.88 | -27.01 | -9.34 | -9.04 | -6.96 | -2.85 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.84 – 50.58
= -20.74
The data illustrates a generally negative cash conversion cycle (CCC) trend for Adtalem Global Education Inc from September 2020 through June 2025, indicating that the company consistently collects cash from students or customers ahead of paying its suppliers.
Initially, the CCC was approximately -2.85 days as of September 2020, gradually decreasing to a low of around -27.01 days by September 2021. This period reflects an increasingly efficient cash flow position, with the company collecting receivables significantly earlier relative to its payables. Notably, during this timeframe, the negative cycle widened, reaching its most substantial negative point, which suggests strong operational cash inflows relative to outflows.
Post-September 2021, the CCC demonstrated fluctuations, narrowing again to about -7.12 days in September 2022, before deepening once more to roughly -13.80 days by the end of 2022. Early 2023 data indicates slight stabilization, with the CCC around -11.85 days, but it again deteriorated sharply, reaching approximately -25.55 days in June 2024. Most recently, by September 2024, the CCC improved somewhat to around -9.24 days, but then declined again to about -2.33 days in December 2024, followed by a decrease to roughly -14.20 days in March 2025 and -20.74 days in June 2025.
Overall, the sustained negative values across the observed period suggest that Adtalem has maintained a cash management strategy wherein it efficiently collects receivables relative to its payables, leading to a strong working capital position that enables it to fund operations without relying heavily on external financing. The variations indicate periods of operational adjustments or market conditions influencing the timing of receivables and payables, but the overarching trend reflects a consistently favorable cash cycle position with periodic fluctuations in the degree of credit efficiency.
Peer comparison
Jun 30, 2025