Adtalem Global Education Inc (ATGE)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	418,085	480,297	557,104	1,514,950	692,766
Total current liabilities	US$ in thousands	487,657	431,203	423,647	408,807	345,983
Current ratio		0.86	1.11	1.32	3.71	2.00

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $418,085K ÷ $487,657K
= 0.86

The current ratio of Adtalem Global Education Inc has exhibited a declining trend over the past five years. As of June 30, 2024, the company's current ratio stands at 0.86, which is significantly lower compared to the ratio in prior years. This indicates that the company may face challenges in meeting its short-term obligations using its current assets alone.

The downward trend in the current ratio suggests a decrease in the company's liquidity and ability to cover its short-term liabilities with its current assets. A current ratio below 1.0 typically raises concerns about the company's short-term financial health and its ability to meet its immediate financial obligations.

It is important for stakeholders to further investigate the reasons behind the decreasing current ratio, as well as assess the company's liquidity management strategies and overall financial health. The decreasing trend may signal potential liquidity constraints that could impact the company's operational efficiency and financial stability in the future.