Adtalem Global Education Inc (ATGE)

Cash ratio

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Cash and cash equivalents US$ in thousands 199,601 219,306 272,194 346,973 476,377
Short-term investments US$ in thousands 12,800 13,200 12,500 17,800 20,600
Total current liabilities US$ in thousands 507,927 487,657 431,203 423,647 408,807
Cash ratio 0.42 0.48 0.66 0.86 1.22

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,601K + $12,800K) ÷ $507,927K
= 0.42

The cash ratio of Adtalem Global Education Inc. has demonstrated a declining trend over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 1.22 as of June 30, 2021, indicating that the company's cash and cash equivalents were sufficient to cover its current liabilities more than once, reflecting a strong liquidity position at that time. By June 30, 2022, the cash ratio decreased to 0.86, suggesting a reduction in the company's liquid assets relative to its current liabilities, though it still maintained a relatively comfortable liquidity buffer. This downward trajectory continued through June 30, 2023, with the ratio declining further to 0.66, indicating a continued decrease in liquidity coverage. The trend persisted into June 30, 2024, when the ratio diminished to 0.48, and further decreased slightly to 0.42 as of June 30, 2025. Overall, the sustained decline in the cash ratio over this period signifies a gradual erosion of the company's liquidity position, pointing to either increased current liabilities or a strategic reduction in cash holdings, or potentially a combination of both.