Adtalem Global Education Inc (ATGE)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	416,190	418,085	478,539	556,039	1,514,950
Total current liabilities	US$ in thousands	507,927	487,657	431,203	423,647	408,807
Current ratio		0.82	0.86	1.11	1.31	3.71

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $416,190K ÷ $507,927K
= 0.82

The current ratio of Adtalem Global Education Inc. has experienced a consistent decline over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's current ratio stood at 3.71, indicating a strong liquidity position with ample current assets relative to current liabilities. By June 30, 2022, the ratio markedly decreased to 1.31, suggesting a reduction in liquidity, although the company still maintained a coverage of its short-term obligations through current assets. The downward trend continued into June 30, 2023, with the ratio declining further to 1.11, approaching a more marginal buffer for short-term liabilities. Subsequently, by June 30, 2024, the current ratio fell below the critical 1.0 threshold to 0.86, indicating that current liabilities exceeded current assets—a potential concern for liquidity and short-term financial health. This ratio remained relatively stable but below 1.0 at 0.82 by June 30, 2025, implying a persistent liquidity deficit and raising questions about the company's ability to meet short-term obligations without additional liquidity sources or restructuring. Overall, the trend reflects a notable reduction in liquidity margins over the four-year period, emphasizing the importance of monitoring the company's short-term financial stability.