Adtalem Global Education Inc (ATGE)

Current 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
Total current assets	US$ in thousands	416,190	450,343	407,085	516,914	418,085	387,634	378,099	472,928	478,539	533,034	423,116	569,922	556,039	1,011,000	610,507	709,257	1,514,950	1,497,280	680,447	768,473
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
Current ratio		0.82	0.83	1.06	0.94	0.86	0.76	0.95	0.95	1.11	1.22	1.14	1.16	1.33	1.94	1.23	1.12	3.71	3.92	2.00	1.87

June 30, 2025 calculation

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

The analysis of Adtalem Global Education Inc.'s current ratio over the specified period reveals notable fluctuations. Initially, the current ratio increased from 1.87 as of September 30, 2020, to a peak of 3.92 on March 31, 2021, indicating a period of strong short-term liquidity and a substantial cushion of current assets over current liabilities. This was followed by a decline to 3.71 by June 30, 2021, and a further decrease to 1.12 as of September 30, 2021, suggesting a significant deterioration in liquidity position during that period.

Subsequently, the ratio experienced minor fluctuations, recording 1.23 at the end of 2021 and rising to 1.94 by March 31, 2022, before gradually declining again to approximately 1.33 at mid-2022 and to 1.16 at September 30, 2022. This period indicates a somewhat volatile but generally modest liquidity level, with ratios hovering around the 1.1 to 1.3 range, reflecting the company's capacity to meet short-term obligations.

From late 2022 onward, a consistent downward trend is observed, with the ratio declining to 1.14 at the end of 2022, 1.22 at the end of March 2023, and further down to 0.95 by September 30, 2023. This decline below the critical threshold of 1 indicates potential liquidity challenges, as current liabilities may be approaching or exceeding current assets. The ratios continue to decline in early 2024, reaching a low of 0.76 at March 31, 2024, before a modest recovery to 0.86, 0.94, and 1.06 during subsequent quarters.

Overall, the trend demonstrates a declining liquidity position over the analyzed period, particularly from late 2021 onward, with the current ratio approaching or falling below one, implying diminished short-term financial resilience. This pattern suggests increased liquidity risk and a need for close monitoring of the company's ability to cover its short-term obligations in future periods.