Adtalem Global Education Inc (ATGE)

Current ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Total current assets	US$ in thousands	418,085	391,817	381,109	475,031	480,297	533,548	423,116	569,922	557,104	1,012,460	610,507	709,792	1,514,950	1,497,520	680,560	768,473	692,766	544,266	389,929	456,113
Total current liabilities	US$ in thousands	487,657	509,110	398,573	495,635	431,203	437,920	371,462	490,549	423,647	526,372	497,475	636,230	408,807	382,452	340,856	409,937	345,983	344,686	304,188	412,475
Current ratio		0.86	0.77	0.96	0.96	1.11	1.22	1.14	1.16	1.32	1.92	1.23	1.12	3.71	3.92	2.00	1.87	2.00	1.58	1.28	1.11

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 fluctuated over the past few quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign.

Looking at the data provided, the current ratio has shown some variability with values ranging from 0.77 to 3.92. In general, a higher current ratio indicates better short-term financial strength and liquidity. Adtalem Global Education Inc experienced a significant increase in the current ratio in the first half of 2021, particularly in March 2021, where the ratio spiked to 3.71 and 3.92 in March 2021. This could indicate a strong ability to cover short-term obligations at that time.

However, the current ratio dropped back down in subsequent quarters, with values hovering around 1 or slightly below 1 for later quarters in 2021 and 2022. The current ratio has shown some improvement in the most recent quarters, reaching 0.96 in both December 2023 and March 2024.

Overall, while the current ratio has shown some fluctuations, it is important for Adtalem Global Education Inc to maintain a current ratio above 1 to ensure it has sufficient current assets to cover its short-term liabilities. Monitoring trends in the current ratio over time can provide valuable insights into the company's liquidity position and ability to meet its short-term financial obligations.