Adtalem Global Education Inc (ATGE)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	199,601	219,306	272,194	346,973	476,377
Short-term investments	US$ in thousands	12,800	13,200	12,500	17,800	20,600
Receivables	US$ in thousands	146,189	126,833	102,749	81,635	43,041
Total current liabilities	US$ in thousands	507,927	487,657	431,203	423,647	408,807
Quick ratio		0.71	0.74	0.90	1.05	1.32

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,601K + $12,800K + $146,189K) ÷ $507,927K
= 0.71

The quick ratio of Adtalem Global Education Inc demonstrates a declining trend over the specified period from June 30, 2021 to June 30, 2025. As of June 30, 2021, the quick ratio stood at 1.32, indicating that the company's most liquid assets exceeded its current liabilities, thus suggesting a strong liquidity position. By June 30, 2022, the ratio decreased to 1.05, reflecting a reduction in liquidity but still maintaining a position where liquid assets comfortably cover current liabilities.

The downward trend continued in subsequent years, with the quick ratio falling to 0.90 by June 30, 2023. This decline implies that the company's liquid assets were nearing the level of its current liabilities, potentially signaling emerging liquidity concerns. Further decreases occurred in the following years, with the ratio reaching 0.74 on June 30, 2024, and marginally decreasing again to 0.71 by June 30, 2025.

Overall, these figures suggest that Adtalem's liquidity position has progressively weakened over the analyzed period. The ratio’s movement below 1.0 in recent years indicates that the company’s liquid assets are insufficient to cover its current liabilities without relying on other sources of funds. This trend warrants close monitoring, as sustained liquidity below 1.0 could pose risks to the company's short-term financial health.