Adtalem Global Education Inc (ATGE)

Cash ratio

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
Cash and cash equivalents US$ in thousands 199,601 219,017 193,958 264,798 221,202 187,324 182,894 262,438 273,689 315,373 207,776 327,515 346,973 788,729 275,420 360,095 494,613 497,746 449,296 561,170
Short-term investments US$ in thousands — 11,900 12,800 12,900 13,200 14,000 13,300 12,100 12,500 12,000 18,100 17,000 17,800 20,200 21,600 20,500 20,600 10,890 10,541 9,434
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
Cash ratio 0.39 0.43 0.54 0.50 0.48 0.40 0.49 0.55 0.66 0.75 0.61 0.70 0.87 1.55 0.60 0.60 1.26 1.33 1.35 1.39

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($199,601K + $—K) ÷ $507,927K
= 0.39

The cash ratio of Adtalem Global Education Inc. over the period from September 2020 through June 2025 demonstrates notable fluctuations that reflect changes in the company's liquidity position related to its ability to meet short-term obligations using its cash and cash equivalents.

In September 2020, the cash ratio stood at 1.39, indicating that the company's cash and cash equivalents comfortably exceeded its current liabilities. This high ratio persisted into December 2020 (1.35) and March 2021 (1.33), suggesting a period of strong short-term liquidity. However, by June 2021, the ratio decreased to 1.26, indicating a slight decline in liquidity but still remaining above the threshold of 1.0, which generally signals sufficient cash to cover current liabilities.

A sharp decline is observed starting in September 2021, where the ratio falls to 0.60, and remains at that level through December 2021, reflecting a notable reduction in cash relative to current liabilities. This decrease indicates a weakening of immediate liquidity, which could be due to increased operational expenses, investment in assets, or other cash outflows.

In March 2022, the cash ratio improves sharply to 1.55, exceeding previous levels and indicating a temporary strengthening of cash reserves relative to current liabilities. However, this increase is followed by a decline to 0.87 in June 2022 and further to 0.70 in September 2022, pointing to a deterioration in liquidity during this period.

The ratio continues to fluctuate at relatively low levels, with values such as 0.61 in December 2022 and 0.75 in March 2023, maintaining a position below 1.0. This pattern suggests that cash reserves are generally insufficient to cover all current liabilities solely through cash and cash equivalents during these periods, possibly implying reliance on other liquidity sources.

Between June 2023 and September 2024, the cash ratio hovers around the 0.39 to 0.50 range, continuing the trend of limited immediate liquidity. The lowest recorded value during this span is 0.39 in June 2025, indicating the company's cash holdings are only about 39% of its current liabilities at that point.

Overall, the trend illustrates a pattern of initial high liquidity levels that declined significantly starting in September 2021, with intermittent periods of slight recovery but generally remaining below the threshold of 1.0 from late 2021 onwards. This persistent below-one ratio indicates that Adtalem Global Education Inc. has had limited immediate cash resources relative to its current liabilities in recent years, emphasizing the importance of other liquidity measures and operational cash flows to meet short-term obligations.