Adtalem Global Education Inc (ATGE)

Liquidity ratios

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
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
Quick ratio 0.71 0.66 0.83 0.83 0.87 0.98 0.88 0.93 1.05 1.72 0.78 0.82 1.38 1.44 1.52 1.63 1.72 0.80 0.56 0.60
Cash ratio 0.45 0.38 0.49 0.53 0.63 0.72 0.61 0.70 0.86 1.54 0.60 0.57 1.21 1.24 1.25 1.39 1.47 0.51 0.25 0.31

Adtalem Global Education Inc's liquidity ratios have fluctuated over the past several quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has shown some volatility. While the current ratio was relatively solid in the past, it has declined significantly in recent quarters, indicating potential challenges in meeting its short-term obligations.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, also demonstrates a similar trend of decreasing values. This suggests that the company may have less ability to cover its short-term liabilities without relying on inventory in recent quarters.

The cash ratio, which provides insight into the company's ability to meet its short-term liabilities with cash and cash equivalents only, has also experienced fluctuations. Although the cash ratio tends to be lower than the current and quick ratios, it has shown a decreasing trend, implying potential liquidity constraints.

Overall, Adtalem Global Education Inc's liquidity ratios indicate a weakening liquidity position in recent quarters, with a declining ability to cover short-term obligations. This trend may raise concerns regarding the company's financial flexibility and ability to navigate potential cash flow challenges in the near future.

Additional liquidity measure

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
Cash conversion cycle days 1.92 9.18 9.77 16.24 3.59 8.75 6.46 11.28 6.59 9.80 10.89 27.63 11.36 16.70 18.31 16.64 11.97 20.55 20.68 24.49

The cash conversion cycle of Adtalem Global Education Inc has shown fluctuations over the past several quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, ending June 30, 2024, the cash conversion cycle was relatively low at 1.92 days, indicating efficient management of working capital and quick conversion of inventory into cash. However, in the previous quarter ending March 31, 2024, the cash conversion cycle increased significantly to 9.18 days, suggesting a slower conversion of resources into cash flow.

Looking back over the past few quarters, there have been variations in the cash conversion cycle, with fluctuations between shorter and longer cycles. This could indicate changes in inventory management, accounts receivable collection, or payment processing efficiency within the company.

Overall, analyzing the trend in the cash conversion cycle can provide insights into the effectiveness of Adtalem Global Education Inc's working capital management and operational efficiency. Further investigation into the underlying factors driving these fluctuations could help the company identify areas for improvement and optimize its cash flow processes.