Adtalem Global Education Inc (ATGE)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	219,306	272,194	346,973	476,377	500,516
Short-term investments	US$ in thousands	13,200	1,495	17,800	18,236	8,968
Total current liabilities	US$ in thousands	487,657	431,203	423,647	408,807	345,983
Cash ratio		0.48	0.63	0.86	1.21	1.47

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($219,306K + $13,200K) ÷ $487,657K
= 0.48

The cash ratio of Adtalem Global Education Inc has experienced a declining trend over the past five years. The ratio has decreased from 1.47 in June 2020 to 0.48 in June 2024. This downward trend indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over the years. A decreasing cash ratio may suggest that the company is becoming less liquid and may face challenges in meeting its immediate financial obligations. Investors and stakeholders should closely monitor this trend to assess the company's liquidity position and financial health.