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.