Adtalem Global Education Inc (ATGE)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 219,306 | 272,194 | 346,973 | 476,377 | 500,516 |
| Short-term investments | US$ in thousands | 13,200 | 1,495 | 17,800 | 18,236 | 8,968 |
| Receivables | US$ in thousands | 126,833 | 102,749 | 81,635 | 67,996 | 87,042 |
| Total current liabilities | US$ in thousands | 487,657 | 431,203 | 423,647 | 408,807 | 345,983 |
| Quick ratio | 0.74 | 0.87 | 1.05 | 1.38 | 1.72 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($219,306K
+ $13,200K
+ $126,833K)
÷ $487,657K
= 0.74
The quick ratio of Adtalem Global Education Inc has been showing a declining trend over the past five years. The ratio has decreased from 1.72 in June 2020 to 0.74 in June 2024. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over the period.
A quick ratio below 1 suggests that the company may have difficulties in meeting its short-term liabilities using its current quick assets. In Adtalem Global Education Inc's case, the consistent decline in the quick ratio raises concerns about its liquidity position and ability to cover immediate financial obligations.
It is important for the company to closely monitor its liquidity management and take appropriate steps to improve its quick ratio to ensure financial stability and meet short-term commitments effectively.
Peer comparison
Jun 30, 2024